XINGYE MINING 二〇二〇年年度报告 與素磅業股份有限公司 INNER MONGOLIA XINGYE MINING CO.,LTD. 内蒙古兴业矿业股份有限公司 2020 年年度报告全文 1 第一节 重要提示、目录和释义 公司董事会、监事会及董事、监事、高级管理人员保证年度报告内容的真 实、准确、完整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连 带的法律责任。 公司负责人吉兴业、主管会计工作负责人董永及会计机构负责人(会计主管 人员)姚艳松声明：保证本年度报告中财务报告的真实、准确、完整。 除下列董事外，其他董事亲自出席了审议本次年报的董事会会议 未亲自出席董事姓名 未亲自出席董事职务 未亲自出席会议原因 被委托人姓名 李强新 独立董事 工作原因 姜青梅 1、公司主营业务可能存在市场价格波动、安全生产、环境保护及政策等风 险，敬请广大投资者注意投资风险。 2、公司已在本报告第四节"经营情况讨论与分析"中"公司未来发展的展望" 部分，对可能面临的风险进行描述，敬请广大投资者留意查阅。 3、《中国证券报》、《上海证券报》、《证券时报》、《证券日报》和巨潮资讯 网（www.cninfo.com ...

Financial Performance - Revenue for the quarter increased by 61.11% to RMB 364,698,441.56[3] - Net profit attributable to shareholders surged by 353.25% to RMB 62,850,375.56[3] - Basic earnings per share rose by 353.33% to RMB 0.0342[3] - Weighted average return on equity increased by 1.69% to 1.21%[3] - Revenue for the reporting period reached 364,698,441.56 yuan, a significant increase from 226,364,428.25 yuan in the same period last year[39] - Net profit attributable to the parent company's owners was 62,850,375.56 yuan, a significant improvement from a loss of 24,817,326.38 yuan in the same period last year[41] - Basic earnings per share for the reporting period were 0.0342 yuan, compared to a loss of 0.0135 yuan per share in the previous year[41] - The company's comprehensive income for the reporting period was 65,801,945.39 yuan, a significant improvement from a loss of 21,144,238.50 yuan in the same period last year[41] - Revenue for the reporting period reached 600.57 million yuan, an increase from 564.12 million yuan in the same period last year[43] - Net profit for the period was a loss of 121.01 million yuan, compared to a loss of 102.86 million yuan in the previous year[44] - Basic earnings per share were -0.0659, down from -0.0560 in the same period last year[44] - Parent company revenue increased to 130.72 million yuan from 58.21 million yuan in the previous year[46] - Parent company net profit was 100.33 million yuan, a significant increase from 470.25 million yuan in the previous year[46] - Other comprehensive income after tax for the parent company was -36.26 million yuan, compared to 8.49 million yuan in the previous year[46] - Total comprehensive income for the parent company was 64.06 million yuan, down from 478.74 million yuan in the previous year[46] Cash Flow and Liquidity - Operating cash flow increased by 166.09% to RMB 248,816,361.03[3] - Net cash flow from operating activities decreased by 248.67% to RMB -41,233,630.63, leading to a significant reduction in net cash and cash equivalents[14] - Sales revenue from goods and services received in cash was 707,021,204.33 yuan, a slight increase from 696,888,737.52 yuan in the previous period[47] - Total cash inflow from operating activities was 745,672,262.78 yuan, compared to 702,805,771.64 yuan in the previous period[47] - Net cash flow from operating activities was 246,619,133.38 yuan, a decrease from 275,114,594.53 yuan in the previous period[47] - Net cash flow from investing activities was -165,894,898.73 yuan, slightly improved from -167,870,144.69 yuan in the previous period[47] - Net cash flow from financing activities was -121,957,865.28 yuan, compared to -119,070,303.53 yuan in the previous period[47] - Cash and cash equivalents decreased by 41,233,630.63 yuan, compared to a decrease of 11,825,853.69 yuan in the previous period[47] - Parent company's cash inflow from operating activities was 722,769,972.63 yuan, a decrease from 919,663,849.98 yuan in the previous period[48] - Parent company's net cash flow from operating activities was -135,049,893.51 yuan, an improvement from -456,918,621.31 yuan in the previous period[48] - Parent company's net cash flow from investing activities was 189,872,136.01 yuan, a decrease from 523,984,486.00 yuan in the previous period[48] - Parent company's net cash flow from financing activities was -57,076,789.96 yuan, an improvement from -66,977,777.78 yuan in the previous period[48] Assets and Liabilities - Total assets decreased by 0.92% to RMB 9,184,411,299.92 compared to the end of the previous year[3] - Prepayments increased by 56.57% to RMB 6,898,934.61 due to increased advance payments for material procurement[10][11] - Accounts receivable for dividends increased by 100.00% to RMB 2,400,000.00 due to undeclared cash dividends from a trust company[11] - Notes payable decreased by 100.00% to RMB 0 as bank acceptance notes matured and were settled[12] - Contract liabilities increased by 100.00% to RMB 157,482,010.34 due to the adoption of new revenue recognition standards[13] - Other current liabilities surged by 762.45% to RMB 21,028,022.82 due to reclassification of prepayments and increased customer deposits[13] - Current portion of non-current liabilities decreased by 84.91% to RMB 178,576,298.56 after repaying RMB 1.1 billion in bank loans[13] - Bonds payable increased by 100.00% to RMB 1,095,341,048.12 due to RMB 1.1 billion debt financing through the Beijing Financial Assets Exchange[13] - The company's monetary funds decreased to 171.57 million yuan as of September 30, 2020, compared to 227.58 million yuan at the end of 2019[35] - Accounts receivable decreased to 65.97 million yuan as of September 30, 2020, from 71.47 million yuan at the end of 2019[35] - Inventory increased to 177.13 million yuan as of September 30, 2020, compared to 140.92 million yuan at the end of 2019[35] - Long-term equity investments decreased to 488.69 million yuan as of September 30, 2020, from 493.85 million yuan at the end of 2019[35] - Fixed assets increased to 2.98 billion yuan as of September 30, 2020, compared to 2.91 billion yuan at the end of 2019[35] - Construction in progress decreased to 793.61 million yuan as of September 30, 2020, from 877.78 million yuan at the end of 2019[35] - Intangible assets decreased to 3.34 billion yuan as of September 30, 2020, compared to 3.36 billion yuan at the end of 2019[35] - Total assets decreased to 9.18 billion yuan as of September 30, 2020, from 9.27 billion yuan at the end of 2019[35] - Short-term borrowings increased to 544.87 million yuan from 546.02 million yuan[36] - Accounts payable decreased to 633.36 million yuan from 658.08 million yuan[36] - Contract liabilities stood at 157.48 million yuan[36] - Long-term borrowings decreased to 420.77 million yuan from 504.93 million yuan[36] - Total liabilities decreased to 3.96 billion yuan from 3.89 billion yuan[36] - Total owner's equity increased to 5.22 billion yuan from 5.37 billion yuan[36] - Monetary funds decreased to 1.20 million yuan from 3.45 million yuan[37] - Long-term equity investments decreased to 4.45 billion yuan from 4.45 billion yuan[37] - Total assets increased to 6.07 billion yuan from 5.90 billion yuan[37] - Total liabilities increased to 1.40 billion yuan from 1.30 billion yuan[38] - Total assets amounted to 9,269,385,280.99, with current assets totaling 778,547,530.38 and non-current assets at 8,490,837,750.61[50][51] - Total liabilities stood at 3,894,518,817.70, including current liabilities of 2,936,546,458.52 and non-current liabilities of 957,972,359.18[51] - Total equity reached 5,374,866,463.29, with equity attributable to the parent company at 5,369,239,276.80 and minority interests at 5,627,186.49[52] - The company's monetary funds remained stable at 227,577,602.83[50] - Accounts receivable were reported at 71,470,971.04, showing no change from the previous period[50] - Inventory levels were maintained at 140,921,388.47[50] - Development expenditure increased significantly to 3,364,499,086.20[50] - Short-term borrowings were recorded at 546,018,754.30[51] - Accounts payable stood at 658,078,736.59[51] - Total assets amounted to 5,897,041,169.86 yuan, with current assets totaling 1,069,694,534.65 yuan and non-current assets totaling 4,827,346,635.21 yuan[53] - Long-term equity investments stood at 4,453,711,225.62 yuan, representing a significant portion of non-current assets[53] - Total liabilities were 1,297,527,945.49 yuan, with current liabilities accounting for 1,249,178,460.12 yuan and non-current liabilities at 48,349,485.37 yuan[54] - Owner's equity totaled 4,599,513,224.37 yuan, including 1,837,192,219.00 yuan in share capital and 2,230,174,634.33 yuan in capital reserve[54] - The company's total liabilities and owner's equity equaled total assets at 5,897,041,169.86 yuan[54] Shareholder Information - The largest shareholder, Inner Mongolia Xingye Group Co., Ltd., holds 30.27% of the shares[6] - The second-largest shareholder, Gansu Northwest Mining Group Co., Ltd., holds 7.94% of the shares[6] - The third-largest shareholder, Chifeng Fulong Public Utilities (Group) Co., Ltd., holds 7.52% of the shares[6] Legal and Regulatory Matters - The company won the appeal in the second trial regarding the 51% equity transfer dispute of Tongdu Mining, with the Yunnan High Court supporting the company's appeal request[15] - The company's subsidiary, Yinman Mining, has fully resumed production after passing the safety inspection and reclaiming the "Safety Production License"[16] - The company's controlling shareholder, Xingye Group, entered the restructuring process, with the first creditors' meeting held on July 13, 2020, and the restructuring is still progressing steadily[18] - Yinman Mining experienced a major safety accident on February 23, 2019, leading to a suspension of production until the recent resumption[16] - The company filed an appeal against the first-instance judgment of the Tongdu Mining equity transfer case on May 10, 2020, and the Yunnan High Court held a hearing on September 9, 2020[15] - Xingye Group's restructuring plan and property management plan were approved during the first creditors' meeting on July 13, 2020[18] - The court ruled on July 23, 2020, that Xingye Group, Yulong State Guesthouse, and Budun Yingen should be restructured under a substantive consolidation approach[18] - The company disclosed multiple updates on the progress of the Tongdu Mining equity transfer case and the Yinman Mining safety accident throughout 2019 and 2020[19] - The company's controlling shareholder, Xingye Group, was officially accepted for restructuring by the Chifeng Intermediate People's Court on October 8, 2019[18] - The company's subsidiary, Yinman Mining, completed safety rectifications and resumed production after the 2019 accident, with the "Safety Production License" reissued on July 28, 2020[16] Performance Commitments and Compensation - The net profit of the mining rights assets for 2017, 2018, and 2019 is expected to be no less than RMB 365.6791 million, RMB 463.8965 million, and RMB 463.8965 million respectively, with cumulative profits for 2017-2019 reaching RMB 1,293.4721 million[22] - Tanghe Times' adjusted performance commitment for 2019, 2020, and 2021 is RMB 41.3816 million, RMB 165.6304 million, and RMB 163.7100 million respectively, with a cumulative total of RMB 370.7220 million[22] - Xingye Group needs to compensate Xingye Mining RMB 79.2468 million for Tanghe Times' 2017 performance shortfall, to be paid in cash by June 30, 2019[23] - Rongbang Mining's profit forecasts for 2017, 2018, and 2019 are RMB 4.2220 million, RMB 18.3368 million, and RMB 24.2705 million respectively[23] - As of December 31, 2019, Yinman Mining's cumulative net profit after financial expenses was RMB 880.5640 million, failing to meet the performance commitment[24] - The total compensation amount for Yinman Mining's performance shortfall is RMB 770.5686 million, corresponding to 127,156,540 shares to be repurchased and canceled[25] - Xingye Group, Ji Xiang, Ji Wei, and Ji Zhe are required to return cash dividends totaling RMB 5.0738 million for the held period[25] Investments and Hedging - The company's derivative investment in zinc during Q3 2020 resulted in a loss of RMB 3.3711 million[26] - Zinc futures trading is conducted for hedging purposes, with positions opened based on the company's annual operating goals and strict adherence to the hedging plan to control risks[27] Operating Costs and Expenses - Sales expenses decreased by 40.34% to RMB 1,224,788.29 due to reduced transportation costs from fewer door-to-door deliveries[13] - Other income increased by 141.76% to RMB 566,687.46 due to higher government subsidies and debt restructuring gains[13] - Operating costs for the reporting period were 285,378,334.39 yuan, compared to 231,474,629.31 yuan in the previous year[39] - Parent company's operating costs for the reporting period were 108,523,609.03 yuan, compared to 33,253,262.91 yuan in the previous year[42] - Operating costs amounted to 664.58 million yuan, higher than the previous year's 636.69 million yuan[43] - Interest expenses for the parent company were 63.89 million yuan, slightly lower than the previous year's 66.73 million yuan[46] - Investment income for the parent company was 187.24 million yuan, a decrease from 550.82 million yuan in the previous year[46] Miscellaneous - Non-recurring gains and losses amounted to a net loss of RMB 38,359,451.63[5] - The company implemented the new revenue recognition standard (ASBE 14) effective January 1, 2020, reclassifying prepayments to contract liabilities and other current liabilities[52] - The third quarter report was not audited, as indicated by the company's board of directors[55]

[Important Notice, Table of Contents, and Definitions](index=2&type=section&id=Part%20I.%20Important%20Notice%2C%20Table%20of%20Contents%2C%20and%20Definitions) This section provides essential information, the report's structure, and definitions of key terms used throughout the document [Important Notice](index=2&type=section&id=Important%20Notice) The Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, assuming legal responsibility - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, with no false records, misleading statements, or major omissions[4](index=4&type=chunk) - The company's main business may face risks such as market price fluctuations, production safety, environmental protection, and policy changes[5](index=5&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for this period[5](index=5&type=chunk) [Table of Contents](index=3&type=section&id=Table%20of%20Contents) This report's clear directory structure covers key chapters including important notices, company profile, business overview, management discussion and analysis, significant matters, share changes, preferred and convertible bonds, director/supervisor/senior management information, corporate bonds, financial reports, and reference documents [Definitions](index=4&type=section&id=Definitions) This section defines common terms used in the report, including major entity names like China Securities Regulatory Commission, Shenzhen Stock Exchange, and the company, as well as the reporting period (January 1, 2020, to June 30, 2020) Main Definition Items | Definition Item | Refers to | Definition Content | | :--- | :--- | :--- | | Company / This Company / Listed Company / Xingye Mining | Refers to | Inner Mongolia Xingye Mining Co., Ltd | | Xingye Group | Refers to | Inner Mongolia Xingye Group Co., Ltd | | Xilin Mining | Refers to | Inner Mongolia Xingye Group Xilin Mining Co., Ltd | | Reporting Period | Refers to | January 1, 2020 - June 30, 2020 | [Company Profile and Key Financial Indicators](index=5&type=section&id=Part%20II.%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section outlines the company's basic information and presents a summary of its key financial performance and position during the reporting period [Company Profile](index=5&type=section&id=Company%20Profile) Inner Mongolia Xingye Mining Co., Ltd., stock ticker "Xingye Mining" and stock code 000426, is listed on the Shenzhen Stock Exchange, with its legal representative being Ji Xingye and contact address in Chifeng City, Inner Mongolia Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Xingye Mining | | Stock Code | 000426 | | Stock Exchange for Listing | Shenzhen Stock Exchange | | Company Chinese Name | Inner Mongolia Xingye Mining Co., Ltd | | Legal Representative | Ji Xingye | - The company's contact information and information disclosure location remained unchanged during the reporting period, as detailed in the 2019 annual report[10](index=10&type=chunk)[11](index=11&type=chunk) [Key Accounting Data and Financial Indicators](index=6&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, the company's key financial indicators significantly declined, with operating revenue decreasing by 30.16% and net profit attributable to shareholders falling by 135.58% to -183.85 million yuan Key Accounting Data and Financial Indicators (Current Reporting Period vs. Prior Year Period) | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 235,873,581.60 | 337,755,185.38 | -30.16% | | Net Profit Attributable to Shareholders of Listed Company | -183,853,767.13 | -78,041,673.15 | -135.58% | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-recurring Gains/Losses) | -118,344,515.17 | -57,784,912.07 | -104.80% | | Net Cash Flow from Operating Activities | -2,197,227.65 | 181,605,334.22 | -101.21% | | Basic Earnings Per Share (yuan/share) | -0.1001 | -0.0425 | -135.53% | | Diluted Earnings Per Share (yuan/share) | -0.1001 | -0.0425 | -135.53% | | Weighted Average Return on Net Assets | -3.50% | -1.50% | -2.00% | | **Current Reporting Period End vs. Prior Year End** | | | | | Total Assets | 9,053,273,462.34 | 9,269,385,280.99 | -2.33% | | Net Assets Attributable to Shareholders of Listed Company | 5,147,796,413.55 | 5,369,239,276.80 | -4.12% | [Non-recurring Gains and Losses Items and Amounts](index=6&type=section&id=Non-recurring%20Gains%20and%20Losses%20Items%20and%20Amounts) During the reporting period, the company's non-recurring gains and losses totaled -65.51 million yuan, primarily driven by non-current asset disposal losses, government subsidies, debt restructuring gains, and other non-operating income and expenses Non-recurring Gains and Losses Items and Amounts | Item | Amount (yuan) | | :--- | :--- | | Non-current asset disposal gains and losses | -4,428,668.48 | | Government subsidies recognized in current profit or loss | 226,087.39 | | Debt restructuring gains and losses | 218,284.07 | | Other non-operating income and expenses apart from the above | -76,906,802.17 | | Less: Income tax impact | -15,381,847.23 | | Total | -65,509,251.96 | [Business Overview](index=8&type=section&id=Part%20III.%20Business%20Overview) This section details the company's primary business activities, main products, operating model, significant asset changes, and core competitive advantages [Main Businesses During the Reporting Period](index=8&type=section&id=Main%20Businesses%20During%20the%20Reporting%20Period) The company's main business is non-ferrous and precious metal mining and smelting, which remained unchanged during the reporting period, with 11 subsidiaries operating across mining, smelting, investment, and trading segments - The company's main business is non-ferrous and precious metal mining and smelting, with no significant changes during the reporting period[16](index=16&type=chunk) - The company has 11 subsidiaries, categorized into four segments: mining, smelting, investment, and trading[16](index=16&type=chunk) - Revenue from non-ferrous metal mining accounted for **98.89% of total operating revenue** from January to June 2020, with performance driven by product output, sales volume, market prices, and mining costs[16](index=16&type=chunk) [Main Products and Uses](index=8&type=section&id=Main%20Products%20and%20Uses) The company's main products include lead, zinc, silver, tin, copper, and iron, along with bismuth and tungsten, which are essential basic materials widely used across various industries from electronics to defense - The company's main products include non-ferrous metals such as lead, zinc, silver, tin, copper, and iron, as well as bismuth and tungsten[16](index=16&type=chunk) - Zinc is primarily used in galvanizing, brass, zinc-based alloys, and chemical products; lead is mainly used in lead-acid batteries and radiation shielding equipment[16](index=16&type=chunk)[17](index=17&type=chunk) - Silver is widely used in industrial sectors such as electronics, renewable energy, and healthcare; tin is extensively used in solder, tinplate, and tin chemicals[18](index=18&type=chunk)[19](index=19&type=chunk) - Copper is widely applied in electrical, electronic, machinery manufacturing, construction, and defense industries; iron ore is primarily used for steelmaking[20](index=20&type=chunk) - Tungsten is an indispensable basic material and strategic resource for the national economy and modern defense, used in manufacturing hard alloys and cutting tools; bismuth is mainly used in fusible alloys, fire extinguishing devices, pharmaceuticals, and superconducting materials[21](index=21&type=chunk)[22](index=22&type=chunk) [Main Business Model](index=10&type=section&id=Main%20Business%20Model) The company operates a complete industrial chain from resource exploration to sales, primarily selling multi-variety associated ore as concentrates or mixed concentrates, with a focus on planned procurement, self-produced raw ore, and market-driven sales strategies - The company possesses multi-variety associated ores, primarily selling products such as concentrates or mixed concentrates[23](index=23&type=chunk) - The company has established a relatively complete industrial chain encompassing non-ferrous metal resource exploration, reserves, development, mining, smelting, and trading[23](index=23&type=chunk) - The procurement model involves planned procurement through bidding, inquiry and comparison, and framework agreements, with strict supervision and approval processes[23](index=23&type=chunk) - The production model primarily uses self-produced raw ore, with mining and beneficiation operations organized according to annual production plans and continuous process optimization[24](index=24&type=chunk) - The sales model adopts a "produce-to-sell" approach, ensuring full production and sales through public bidding, pricing, payment-before-delivery, and payment-on-delivery strategies[24](index=24&type=chunk) [Significant Changes in Major Assets](index=11&type=section&id=Significant%20Changes%20in%20Major%20Assets) During the reporting period, no significant changes occurred in the company's major assets, including equity investments, fixed assets, intangible assets, and construction in progress Significant Changes in Major Assets | Major Asset | Significant Change Description | | :--- | :--- | | Equity Investments | No significant changes occurred | | Fixed Assets | No significant changes occurred | | Intangible Assets | No significant changes occurred | | Construction in Progress | No significant changes occurred | - The company had no major overseas assets during the reporting period[26](index=26&type=chunk) [Core Competitiveness Analysis](index=11&type=section&id=Core%20Competitiveness%20Analysis) The company's core competitiveness remained stable, stemming from its advantageous location in Inner Mongolia's rich mineral resource region, extensive mineral reserves, large production scale (e.g., Yinman Mining as the largest silver producer), controlling shareholder's resource support, and strong talent and technological advantages in mining and management - The company's location in Inner Mongolia, which boasts the largest mineral resource reserves in China, provides a significant geographical advantage for its development[26](index=26&type=chunk)[27](index=27&type=chunk) - The company possesses abundant mineral resources and a large production scale, with its subsidiary Yinman Mining being the largest silver production mine in China, demonstrating strong profitability[28](index=28&type=chunk) - The controlling shareholder, Xingye Group, has committed to transferring its exploration rights into mining rights and injecting them into the listed company, further enriching the company's product portfolio and resource reserves[29](index=29&type=chunk) - The company has cultivated a team of highly qualified professionals in mineral exploration, mining, smelting, and enterprise management, utilizing industry-leading process equipment and automated control technologies[30](index=30&type=chunk) [Management Discussion and Analysis](index=13&type=section&id=Part%20IV.%20Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the company's operational performance, financial position, investment activities, and risk management strategies during the reporting period [Overview](index=13&type=section&id=Overview) In the first half of 2020, the company's operating performance significantly declined due to COVID-19 related delays in resuming work, leading to reduced production and sales, although key subsidiaries like Yinman Mining have resumed operations and new projects have commenced production - In the first half of 2020, the company and its subsidiaries experienced delays in resuming work due to the COVID-19 pandemic, resulting in a year-on-year decrease in the production and sales of main products[31](index=31&type=chunk) Key Financial Performance for H1 2020 | Indicator | Amount (10,000 yuan) | YoY Change | | :--- | :--- | :--- | | Operating Revenue | 23,587.36 | -30.16% | | Total Profit | -23,105.36 | -160.85% | | Net Profit Attributable to Shareholders of Listed Company | -18,385.38 | -135.58% | - Subsidiary Yinman Mining has resumed production; Qianjinda Mining has restarted construction, with production expected in Q4 2020; Rongbang Mining officially commenced production during the reporting period[32](index=32&type=chunk) [Main Business Analysis](index=14&type=section&id=Main%20Business%20Analysis) The company's main business revenue decreased by 30.16% due to reduced production and sales caused by the pandemic, with zinc concentrate revenue declining significantly while iron and lead concentrate revenues increased due to higher prices and sales volumes Key Financial Data YoY Changes | Indicator | Current Reporting Period (yuan) | Prior Year Period (yuan) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 235,873,581.60 | 337,755,185.38 | -30.16% | Reduced production and sales due to pandemic | | Operating Cost | 128,418,434.22 | 158,135,878.43 | -18.79% | Reduced production and sales due to pandemic | | Selling Expenses | 591,499.11 | 1,057,362.67 | -44.06% | Decrease in sales volume of door-to-door delivery products | | Administrative Expenses | 143,197,799.71 | 134,239,449.59 | 6.67% | Expenses during shutdown period recognized in current profit or loss | | Financial Expenses | 83,466,431.39 | 81,297,756.35 | 2.67% | Increase in interest expenses | | Income Tax Expense | -47,198,718.63 | -10,535,517.04 | -348.00% | Decrease in total profit | | Net Cash Flow from Operating Activities | -2,197,227.65 | 181,605,334.22 | -101.21% | Decrease in cash received from sales of goods and services | | Net Cash Flow from Investing Activities | -88,584,805.86 | -134,344,829.04 | 34.06% | Decrease in cash paid for acquisition of fixed assets, intangible assets, etc | | Net Cash Flow from Financing Activities | -87,804,987.78 | -70,138,269.21 | -25.19% | Increase in cash paid for debt repayment | | Net Increase in Cash and Cash Equivalents | -178,587,021.29 | -22,877,764.03 | -680.61% | Decrease in net cash flow from operating activities | Operating Revenue Composition (by Industry, Product, Region) | Category | Item | Current Reporting Period Amount (yuan) | % of Operating Revenue | Prior Year Period Amount (yuan) | % of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **By Industry** | Mining Industry | 233,244,867.64 | 98.89% | 336,120,800.99 | 99.52% | -30.61% | | | Other | 2,628,713.96 | 1.11% | 1,634,384.39 | 0.48% | 60.84% | | **By Product** | Zinc Concentrate | 121,864,795.86 | 51.67% | 182,327,393.46 | 53.98% | -33.16% | | | Iron Concentrate | 81,897,151.37 | 34.72% | 56,174,247.10 | 16.63% | 45.79% | | | Lead Concentrate | 14,240,853.44 | 6.04% | 9,646,567.08 | 2.86% | 47.63% | | | Lead-Silver Concentrate | 9,577,077.56 | 4.06% | 17,578,497.63 | 5.20% | -45.52% | | | Copper-Silver Concentrate | 3,239,448.52 | 1.37% | 30,249,672.89 | 8.96% | -89.29% | | | Low-grade Tin Concentrate | 7,841.81 | 0.00% | 1,757,645.69 | 0.52% | -99.55% | | | Tungsten Concentrate | 2,417,699.08 | 1.02% | - | 0.00% | 100% | | | Tin Concentrate | - | 0.00% | 38,386,777.14 | 11.37% | -100.00% | | **By Region** | Domestic Sales | 235,873,581.60 | 100.00% | 337,755,185.38 | 100.00% | -30.16% | - The year-on-year decrease in operating revenue and operating cost in the mining industry was primarily due to the impact of the COVID-19 pandemic, which delayed the resumption of work for the company and its subsidiaries, leading to reduced production and sales of main products[36](index=36&type=chunk) - The year-on-year increase in operating revenue and operating cost for iron concentrate was mainly due to changes in macroeconomic conditions and market supply-demand dynamics, resulting in higher sales prices and increased sales volumes[38](index=38&type=chunk) [Analysis of Assets and Liabilities](index=16&type=section&id=Analysis%20of%20Assets%20and%20Liabilities) The company's asset and liability structure changed, with long-term equity investments increasing due to an equity transfer and equity method accounting, while construction in progress and long-term borrowings decreased due to reclassification and asset transfers Significant Changes in Asset Composition | Item | Current Period End Amount (yuan) | % of Total Assets | Prior Year End Amount (yuan) | % of Total Assets | % Change | Significant Change Description | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 34,217,999.36 | 0.38% | 21,814,377.76 | 0.24% | 0.14% | No significant changes occurred | | Accounts Receivable | 72,054,229.60 | 0.80% | 86,380,592.71 | 0.96% | -0.16% | Decrease in accounts receivable balance | | Inventories | 151,948,603.66 | 1.68% | 229,353,746.19 | 2.55% | -0.87% | Decrease in inventory of finished goods and work-in-progress | | Long-term Equity Investments | 490,169,735.78 | 5.41% | 291,339,613.24 | 3.23% | 2.18% | Equity transfer of Tiantong Mining, remaining equity accounted for by equity method | | Fixed Assets | 2,994,111,995.37 | 33.07% | 2,970,702,484.11 | 32.97% | 0.10% | No significant changes occurred | | Construction in Progress | 751,475,843.33 | 8.30% | 840,796,143.10 | 9.33% | -1.03% | Part of Qianjinda Mining's shaft engineering transferred to fixed assets | | Short-term Borrowings | 545,900,190.29 | 6.03% | 545,000,000.00 | 6.05% | -0.02% | No significant changes occurred | | Long-term Borrowings | 420,769,700.00 | 4.65% | 544,538,903.11 | 6.04% | -1.39% | Reclassification of long-term borrowings due within one year | Assets and Liabilities Measured at Fair Value | Item | Opening Balance (yuan) | Fair Value Change Gain/Loss for the Period (yuan) | Cumulative Fair Value Change Recognized in Equity (yuan) | Closing Balance (yuan) | | :--- | :--- | :--- | :--- | :--- | | Other Equity Instrument Investments | 267,495,370.91 | -52,295,370.91 | 105,826,927.93 | 215,200,000.00 | [Investment Analysis](index=17&type=section&id=Investment%20Analysis) During the reporting period, the company did not undertake any significant equity investments, non-equity investments, or derivative investments - The company had no securities investments during the reporting period[41](index=41&type=chunk) - The company had no derivative investments during the reporting period[42](index=42&type=chunk) [Significant Asset and Equity Disposals](index=18&type=section&id=Significant%20Asset%20and%20Equity%20Disposals) During the reporting period, the company did not dispose of any significant assets or equity - The company did not dispose of any significant assets during the reporting period[43](index=43&type=chunk) - The company did not dispose of any significant equity during the reporting period[43](index=43&type=chunk) [Analysis of Major Holding and Participating Companies](index=18&type=section&id=Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) The company's major subsidiaries, including Rongguan Mining, Yinman Mining, Xilin Mining, Rongbang Mining, and Qianjinda Mining, primarily engage in non-ferrous metal mining, with varying financial performances during the period Major Subsidiary Financial Data (H1 2020) | Company Name | Company Type | Main Business | Total Assets (yuan) | Net Assets (yuan) | Operating Revenue (yuan) | Operating Profit (yuan) | Net Profit (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Inner Mongolia Xingye Group Xilin Mining Co., Ltd | Subsidiary | Non-ferrous metal mining | 542,417,495.99 | 184,134,888.97 | 5,705,930.52 | -23,584,262.40 | -18,835,164.60 | | Inner Mongolia Xingye Group Rongguan Mining Co., Ltd | Subsidiary | Non-ferrous metal mining | 923,552,760.15 | 363,496,737.57 | 185,944,912.05 | 74,824,781.91 | 45,944,687.97 | | Xilingol Shuangyuan Non-ferrous Metal Smelting Co., Ltd | Subsidiary | Non-ferrous metal smelting | 87,721,308.11 | -816,519,899.30 | - | -5,338,941.01 | -5,343,745.36 | | Xiwuzhumuqin Qi Yinman Mining Co., Ltd | Subsidiary | Non-ferrous metal mining | 3,531,194,321.83 | 2,294,910,335.64 | 16,060,479.76 | -74,910,073.76 | -69,467,624.24 | | Chifeng Rongbang Mining Co., Ltd | Subsidiary | Non-ferrous metal mining | 375,857,491.04 | 43,384,894.40 | 29,382,996.39 | -6,436,829.51 | -5,337,999.54 | | Zhengxiangbai Qi Qianjinda Mining Co., Ltd | Subsidiary | Non-ferrous metal mining | 660,938,862.96 | 109,414,096.85 | 1,666.70 | -1,867,485.51 | -2,597,670.75 | [Risks Faced by the Company and Countermeasures](index=20&type=section&id=Risks%20Faced%20by%20the%20Company%20and%20Countermeasures) The company faces risks from market price fluctuations, production safety, environmental protection, and policy changes, which it addresses through market forecasting, hedging, safety investments, environmental management, and strategic resource acquisition - The company's main business may face market price fluctuation risks, significantly influenced by international non-ferrous metal prices and macroeconomic conditions[48](index=48&type=chunk) - Mining activities inherently carry safety production risks such as rockfalls, roof collapses, and subsidence[48](index=48&type=chunk) - Mineral resource mining and beneficiation processes may generate waste, leading to environmental pollution, landscape changes, and soil erosion risks[49](index=49&type=chunk) - The paid acquisition system for mining and exploration rights may pose policy risks, as failure to renew or obtain mining rights in a timely manner could impact production and operations[49](index=49&type=chunk)[50](index=50&type=chunk) - Countermeasures include strengthening market forecasting, engaging in futures hedging, increasing safety investments, enhancing environmental management, and seeking and reserving strategic resources[50](index=50&type=chunk) [Significant Matters](index=22&type=section&id=Part%20V.%20Significant%20Matters) This section details important events during the reporting period, including shareholder meetings, profit distribution plans, unfulfilled commitments, litigation, integrity status, related party transactions, significant contracts, social responsibility, and subsidiary-specific significant matters [Annual and Extraordinary General Meetings During the Reporting Period](index=22&type=section&id=Annual%20and%20Extraordinary%20General%20Meetings%20During%20the%20Reporting%20Period) During the reporting period, the company held its first and second extraordinary general meetings in 2020, as well as the 2019 annual general meeting, with investor participation rates ranging from 38.36% to 41.94% Shareholder Meetings During the Reporting Period | Meeting Session | Meeting Type | Investor Participation Rate | Date Held | Disclosure Date | | :--- | :--- | :--- | :--- | :--- | | 2020 First Extraordinary General Meeting | Extraordinary General Meeting | 41.94% | May 11, 2020 | May 12, 2020 | | 2020 Second Extraordinary General Meeting | Extraordinary General Meeting | 38.36% | May 29, 2020 | May 30, 2020 | | 2019 Annual General Meeting | Annual General Meeting | 41.71% | June 29, 2020 | June 30, 2020 | [Profit Distribution and Capital Reserve Conversion to Share Capital During the Reporting Period](index=22&type=section&id=Profit%20Distribution%20and%20Capital%20Reserve%20Conversion%20to%20Share%20Capital%20During%20the%20Reporting%20Period) The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the semi-annual period[52](index=52&type=chunk) [Commitments Fulfilled and Overdue Unfulfilled by Controlling Shareholder, Shareholders, Related Parties, Acquirers, and the Company](index=23&type=section&id=Commitments%20Fulfilled%20and%20Overdue%20Unfulfilled%20by%20Controlling%20Shareholder%2C%20Shareholders%2C%20Related%20Parties%2C%20Acquirers%2C%20and%20the%20Company) The controlling shareholder, Xingye Group, and its concerted parties have multiple unfulfilled performance compensation commitments totaling 104.77 million yuan and 127.16 million shares, with judicial restructuring proceedings currently underway - Xingye Group, Ji Wei, Ji Xiang, and Ji Zhe committed that Yinman Mining's mining rights assets would achieve a cumulative net profit of no less than 1,293.47 million yuan for 2017-2019[54](index=54&type=chunk) - Xingye Group committed that Tanghe Times would achieve a cumulative audited net profit after tax of no less than 370.72 million yuan for 2019-2021[54](index=54&type=chunk) - Xingye Group's unfulfilled performance compensation for Rongbang Mining in 2017 and 2018 amounted to 5.65 million yuan and 19.87 million yuan, respectively, and for Tanghe Times in 2017 amounted to 79.25 million yuan, totaling 104.77 million yuan, with a remaining balance of 86.52 million yuan after deducting dividends payable and rent[55](index=55&type=chunk) - Yinman Mining failed to meet its performance commitments for 2017-2019, requiring compensation of 770.57 million yuan, corresponding to 127,156,540 shares and cash dividends of 5.07 million yuan[55](index=55&type=chunk) - Due to Xingye Group entering judicial restructuring, the company is currently unable to proceed with share repurchase and cancellation and will continue to urge them to fulfill their compensation obligations[55](index=55&type=chunk) [Appointment and Dismissal of Accounting Firms](index=25&type=section&id=Appointment%20and%20Dismissal%20of%20Accounting%20Firms) The company's semi-annual financial report was not audited - The company's semi-annual report was not audited[56](index=56&type=chunk) [Litigation Matters](index=25&type=section&id=Litigation%20Matters) The company is involved in a lawsuit with Tibet Pengxi Investment Co., Ltd. regarding a 51% equity transfer agreement for Tongdu Mining, where the company lost in the first instance and has appealed - The company is involved in a lawsuit with Tibet Pengxi Investment Co., Ltd. regarding a 51% equity transfer agreement for Tongdu Mining, initiated by Tibet Pengxi[57](index=57&type=chunk) - The company lost in the first instance, ordered to pay equity transfer fees and liquidated damages, and has recognized a provision of 57.10 million yuan (of which 56.91 million yuan in liquidated damages was recognized as non-operating expenses)[57](index=57&type=chunk)[228](index=228&type=chunk)[249](index=249&type=chunk) - The company has appealed to the Yunnan Provincial Higher People's Court, with the date for the second instance hearing yet to be announced[57](index=57&type=chunk) [Integrity Status of the Company, its Controlling Shareholder, and Actual Controller](index=26&type=section&id=Integrity%20Status%20of%20the%20Company%2C%20its%20Controlling%20Shareholder%2C%20and%20Actual%20Controller) The company's controlling shareholder, Xingye Group, entered judicial restructuring proceedings on October 8, 2019, which are steadily progressing as of the end of the reporting period - The company's controlling shareholder, Xingye Group, received a civil ruling from the court on October 8, 2019, accepting its restructuring application and formally entering restructuring proceedings[59](index=59&type=chunk) - On July 13, 2020, Xingye Group held its first creditor's meeting, electing a creditors' committee, and the restructuring work is steadily progressing[59](index=59&type=chunk) [Significant Related Party Transactions](index=27&type=section&id=Significant%20Related%20Party%20Transactions) During the reporting period, the company had no related party transactions concerning daily operations, asset/equity acquisitions/disposals, or joint external investments, but did have non-operating related party receivables and payables - The company had no related party transactions related to daily operations, asset or equity acquisitions/disposals, or joint external investments during the reporting period[61](index=61&type=chunk)[62](index=62&type=chunk) Related Party Receivables and Payables (Period-end Balance) | Related Party | Related Relationship | Reason for Formation | Period-end Balance (10,000 yuan) | | :--- | :--- | :--- | :--- | | Inner Mongolia Xingye Group Co., Ltd | Controlling Shareholder | Tanghe Times, Rongbang Mining performance compensation | 8,651.93 | | Kunming Dongchuan Tongdu Mining Co., Ltd | Joint Venture | Current account | 3,409.8 | | Chen Barag Banner Tiantong Mining Co., Ltd | Joint Venture | Current account | 0 (Opening 1,922.82) | | Inner Mongolia Xingye Group Co., Ltd | Controlling Shareholder | Rent | 718.42 | [Significant Contracts and Their Performance](index=28&type=section&id=Significant%20Contracts%20and%20Their%20Performance) The company had no significant entrustment, contracting, wealth management, or other major contracts during the reporting period, but engaged in office building leases with its controlling shareholder and provided significant guarantees for subsidiaries - The company leases office buildings from its controlling shareholder, Xingye Group, for a term from January 1, 2018, to December 31, 2020, with an annual rent of 7,184,160.00 yuan[66](index=66&type=chunk)[67](index=67&type=chunk) Company Guarantees for Subsidiaries (Period-end) | Name of Guaranteed Party | Guarantee Limit (10,000 yuan) | Actual Guarantee Amount (10,000 yuan) | Guarantee Type | Guarantee Period | Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | | Tanghe Times | 75,708.15 | 58,415 | Joint and several liability guarantee | 1-5 years | No | Subsidiary Guarantees for Subsidiaries (Period-end) | Name of Guaranteed Party | Guarantee Limit (10,000 yuan) | Actual Guarantee Amount (10,000 yuan) | Guarantee Type | Guarantee Period | Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | | Xilin Mining | 4,300 | 4,300 | Mortgage | 3 years | No | | Xilin Mining | 4,000 | 4,000 | Mortgage | 3 years | No | | Xilin Mining | 4,000 | 4,000 | Mortgage | 3 years | No | - As of the end of the reporting period, the total approved guarantee limit was 1,080 million yuan, with an actual guarantee balance of 707.15 million yuan, accounting for **13.74% of the company's net assets**[70](index=70&type=chunk) [Social Responsibility](index=30&type=section&id=Social%20Responsibility) The company prioritizes environmental protection, ensuring compliance with regulations and achieving green mining certifications for several subsidiaries, while actively pursuing land reclamation and geological environment restoration - All of the company's subsidiaries are not listed as key polluting units by environmental protection authorities, and their pollutant discharge concentrations meet discharge standards[72](index=72&type=chunk) - Subsidiary Yinman Mining has completed the environmental protection acceptance for its mine water emergency disposal project and obtained a pollutant discharge permit[72](index=72&type=chunk)[73](index=73&type=chunk) - Subsidiaries Xilin Mining, Rongguan Mining, and Rongbang Mining have all passed the autonomous region-level green mine construction assessment[76](index=76&type=chunk)[77](index=77&type=chunk) - The company actively promotes land reclamation and geological environment management, further improving the ecological environment of its mining areas[75](index=75&type=chunk) - The company has not undertaken any targeted poverty alleviation work during the semi-annual reporting period and has no immediate plans for future targeted poverty alleviation[78](index=78&type=chunk) [Significant Matters of Company Subsidiaries](index=33&type=section&id=Significant%20Matters%20of%20Company%20Subsidiaries) Yinman Mining, a wholly-owned subsidiary, which had been suspended since a major safety accident on February 23, 2019, has now completed its rectification, passed expert acceptance, retrieved its safety production license, and resumed operations - The company's wholly-owned subsidiary, Yinman Mining, had been in a state of production suspension and business closure since a major safety production accident on February 23, 2019[79](index=79&type=chunk) - As of now, Yinman Mining's rectification has passed expert acceptance, it has retrieved its "Safety Production License," and has resumed production[79](index=79&type=chunk) [Share Changes and Shareholder Information](index=34&type=section&id=Part%20VI.%20Share%20Changes%20and%20Shareholder%20Information) This section details the company's share capital movements and the ownership structure, including major shareholders and their shareholding status [Share Change Status](index=34&type=section&id=Share%20Change%20Status) During the reporting period, the company's restricted shares decreased by 14.21 million shares, while unrestricted shares increased by the same amount, with the total share capital remaining unchanged at 1,837,192,219 shares Share Change Status | Item | Number of Shares Before Change (shares) | Proportion | Net Increase/Decrease in This Change (shares) | Number of Shares After Change (shares) | Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 376,108,102 | 20.47% | -14,210,313 | 361,897,789 | 19.70% | | II. Unrestricted Shares | 1,461,084,117 | 79.53% | 14,210,313 | 1,475,294,430 | 80.30% | | III. Total Shares | 1,837,192,219 | 100.00% | 0 | 1,837,192,219 | 100.00% | [Number of Shareholders and Shareholding Status](index=35&type=section&id=Number%20of%20Shareholders%20and%20Shareholding%20Status) As of the end of the reporting period, the company had 32,618 common shareholders, with the top ten shareholders including the controlling shareholder, Inner Mongolia Xingye Group, whose shares are fully pledged and frozen - As of the end of the reporting period, the total number of common shareholders was **32,618**[83](index=83&type=chunk) Top 10 Common Shareholders' Shareholding Status | Shareholder Name | Shareholder Nature | Shareholding Ratio | Number of Common Shares Held at Period-end (shares) | Number of Restricted Common Shares Held (shares) | Number of Unrestricted Common Shares Held (shares) | Share Status | Number of Pledged or Frozen Shares (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Inner Mongolia Xingye Group Co., Ltd | Domestic Non-state-owned Legal Person | 30.27% | 556,075,350 | 191,875,264 | 364,200,086 | Pledged/Frozen | 555,000,086/556,075,350 | | Gansu Northwest Mining Group Co., Ltd | Domestic Non-state-owned Legal Person | 7.94% | 145,823,042 | 0 | 145,823,042 | Pledged/Frozen | 145,823,042/145,823,042 | | Chifeng Fulong Public (Group) Co., Ltd | State-owned Legal Person | 7.52% | 138,184,794 | 0 | 138,184,794 | Pledged | 40,000,000 | | Li Xianlai | Domestic Natural Person | 4.94% | 90,771,793 | 0 | 90,771,793 | Pledged | 83,629,999 | | Ji Xiang | Domestic Natural Person | 3.63% | 66,623,003 | 66,223,003 | 400,000 | Pledged | 66,223,003 | | Ji Wei | Domestic Natural Person | 3.60% | 66,223,003 | 66,223,003 | 0 | Pledged | 66,223,003 | | Ji Zhe | Domestic Natural Person | 1.62% | 29,798,597 | 29,798,597 | 0 | Pledged | 29,798,597 | | Li Jia | Domestic Natural Person | 1.33% | 24,492,900 | 0 | 24,492,900 | Pledged | 24,480,000 | - Natural person shareholder Ji Xiang is the son of Ji Xingye, the actual controller of the company's controlling shareholder Xingye Group; Ji Wei is the daughter of Ji Xingye; Ji Zhe is the daughter of Ji Xingjun, the company's general manager and director[84](index=84&type=chunk) [Preferred Shares Related Information](index=37&type=section&id=Part%20VII.%20Preferred%20Shares%20Related%20Information) This section confirms that the company had no preferred shares during the reporting period [No Preferred Shares During the Reporting Period](index=37&type=section&id=No%20Preferred%20Shares%20During%20the%20Reporting%20Period) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[87](index=87&type=chunk) [Convertible Corporate Bonds Related Information](index=38&type=section&id=Part%20VIII.%20Convertible%20Corporate%20Bonds%20Related%20Information) This section confirms that the company had no convertible corporate bonds during the reporting period [No Convertible Corporate Bonds During the Reporting Period](index=38&type=section&id=No%20Convertible%20Corporate%20Bonds%20During%20the%20Reporting%20Period) The company had no convertible corporate bonds during the reporting period - The company had no convertible corporate bonds during the reporting period[88](index=88&type=chunk) [Directors, Supervisors, and Senior Management Information](index=39&type=section&id=Part%20IX.%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management%20Information) This section provides details on the shareholding and changes of the company's directors, supervisors, and senior management [Shareholding Changes of Directors, Supervisors, and Senior Management](index=40&type=section&id=Shareholding%20Changes%20of%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, there were no changes in the shareholdings of the company's directors, supervisors, and senior management - The company's directors, supervisors, and senior management had no changes in their shareholdings during the reporting period[89](index=89&type=chunk) [Changes in Directors, Supervisors, and Senior Management](index=40&type=section&id=Changes%20in%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, there were no changes in the company's directors, supervisors, and senior management - The company's directors, supervisors, and senior management had no changes during the reporting period[90](index=90&type=chunk) [Corporate Bonds Related Information](index=41&type=section&id=Part%20X.%20Corporate%20Bonds%20Related%20Information) This section confirms that the company has no publicly issued corporate bonds listed on stock exchanges that are either undue or not fully redeemed by the approval date of the semi-annual report [No Publicly Issued Corporate Bonds Listed on Stock Exchanges That Are Undue or Not Fully Redeemed by the Approval Date of the Semi-Annual Report](index=41&type=section&id=No%20Publicly%20Issued%20Corporate%20Bonds%20Listed%20on%20Stock%20Exchanges%20That%20Are%20Undue%20or%20Not%20Fully%20Redeemed%20by%20the%20Approval%20Date%20of%20the%20Semi-Annual%20Report) The company has no publicly issued corporate bonds listed on stock exchanges that are either undue or not fully redeemed by the approval date of the semi-annual report - The company has no publicly issued corporate bonds listed on stock exchanges that are either undue or not fully redeemed by the approval date of the semi-annual report[91](index=91&type=chunk) [Financial Report](index=42&type=section&id=Part%20XI.%20Financial%20Report) This section presents the company's financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with detailed notes on major items, accounting policies, and risk disclosures [Audit Report](index=42&type=section&id=Audit%20Report) The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[92](index=92&type=chunk) [Financial Statements](index=43&type=section&id=Financial%20Statements) This section presents the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2020, providing a comprehensive view of its financial position and operating results [Consolidated Balance Sheet](index=43&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2020, the company's consolidated total assets were 9.05 billion yuan, a 2.33% decrease from the end of 2019, with total liabilities at 3.90 billion yuan and total owners' equity at 5.15 billion yuan Consolidated Balance Sheet Key Data | Item | June 30, 2020 (yuan) | December 31, 2019 (yuan) | | :--- | :--- | :--- | | Total Assets | 9,053,273,462.34 | 9,269,385,280.99 | | Total Current Assets | 592,946,863.00 | 778,547,530.38 | | Total Non-current Assets | 8,460,326,599.34 | 8,490,837,750.61 | | Total Liabilities | 3,899,850,926.72 | 3,894,518,817.70 | | Total Owners' Equity | 5,153,422,535.62 | 5,374,866,463.29 | [Parent Company Balance Sheet](index=45&type=section&id=Parent%20Company%20Balance%20Sheet) As of June 30, 2020, the parent company's total assets were 5.97 billion yuan, a slight increase from the end of 2019, with total liabilities at 1.31 billion yuan and total owners' equity at 4.65 billion yuan Parent Company Balance Sheet Key Data | Item | June 30, 2020 (yuan) | December 31, 2019 (yuan) | | :--- | :--- | :--- | | Total Assets | 5,966,668,280.23 | 5,897,041,169.86 | | Total Current Assets | 1,161,085,441.13 | 1,069,694,534.65 | | Total Non-current Assets | 4,805,582,839.10 | 4,827,346,635.21 | | Total Liabilities | 1,313,710,549.18 | 1,297,527,945.49 | | Total Owners' Equity | 4,652,957,731.05 | 4,599,513,224.37 | [Consolidated Income Statement](index=47&type=section&id=Consolidated%20Income%20Statement) In the first half of 2020, the company's consolidated total operating revenue was 235.87 million yuan, a 30.16% year-on-year decrease, resulting in a total loss of 231.05 million yuan and a net loss attributable to parent company owners of 183.85 million yuan Consolidated Income Statement Key Data | Item | H1 2020 (yuan) | H1 2019 (yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 235,873,581.60 | 337,755,185.38 | | Total Operating Cost | 379,202,883.12 | 405,219,992.37 | | Total Profit | -231,053,550.18 | -88,577,723.74 | | Net Profit | -183,854,831.55 | -78,042,206.70 | | Net Profit Attributable to Parent Company Owners | -183,853,767.13 | -78,041,673.15 | | Basic Earnings Per Share | -0.1001 | -0.0425 | [Parent Company Income Statement](index=49&type=section&id=Parent%20Company%20Income%20Statement) In the first half of 2020, the parent company's operating revenue was 19.01 million yuan, a 19.98% year-on-year decrease, with a total profit of 60.88 million yuan and a net profit of 92.67 million yuan Parent Company Income Statement Key Data | Item | H1 2020 (yuan) | H1 2019 (yuan) | | :--- | :--- | :--- | | Operating Revenue | 19,007,398.44 | 23,726,752.42 | | Operating Profit | 117,787,196.93 | 477,858,318.09 | | Total Profit | 60,879,189.20 | 477,858,318.09 | | Net Profit | 92,666,034.87 | 496,133,907.80 | | Total Comprehensive Income | 53,444,506.68 | 500,945,305.29 | [Consolidated Cash Flow Statement](index=50&type=section&id=Consolidated%20Cash%20Flow%20Statement) In the first half of 2020, the company's net cash flow from operating activities was -2.20 million yuan, from investing activities was -88.58 million yuan, and from financing activities was -87.80 million yuan, resulting in a net decrease in cash and cash equivalents of 178.59 million yuan Consolidated Cash Flow Statement Key Data | Item | H1 2020 (yuan) | H1 2019 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -2,197,227.65 | 181,605,334.22 | | Net Cash Flow from Investing Activities | -88,584,805.86 | -134,344,829.04 | | Net Cash Flow from Financing Activities | -87,804,987.78 | -70,138,269.21 | | Net Increase in Cash and Cash Equivalents | -178,587,021.29 | -22,877,764.03 | [Parent Company Cash Flow Statement](index=51&type=section&id=Parent%20Company%20Cash%20Flow%20Statement) In the first half of 2020, the parent company's net cash flow from operating activities was -150.31 million yuan, from investing activities was 189.92 million yuan, and from financing activities was -40.96 million yuan, leading to a net decrease in cash and cash equivalents of 1.35 million yuan Parent Company Cash Flow Statement Key Data | Item | H1 2020 (yuan) | H1 2019 (yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -150,305,447.15 | -479,841,717.08 | | Net Cash Flow from Investing Activities | 189,920,832.00 | 524,582,000.00 | | Net Cash Flow from Financing Activities | -40,960,567.74 | -44,488,888.89 | | Net Increase in Cash and Cash Equivalents | -1,345,182.89 | 251,394.03 | [Consolidated Statement of Changes in Owners' Equity](index=52&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Owners%27%20Equity) In the first half of 2020, the company's consolidated total owners' equity decreased by 221.44 million yuan, primarily due to a net loss attributable to parent company owners of 183.85 million yuan and a 39.22 million yuan decrease in other comprehensive income Consolidated Statement of Changes in Owners' Equity | Item | Opening Balance (yuan) | Change in Current Period (yuan) | Closing Balance (yuan) | | :--- | :--- | :--- | :--- | | Total Owners' Equity Attributable to Parent Company | 5,369,239,276.80 | -221,442,863.25 | 5,147,796,413.55 | | Minority Interests | 5,627,186.49 | -1,064.42 | 5,626,122.07 | | Total Owners' Equity | 5,374,866,463.29 | -221,443,927.67 | 5,153,422,535.62 | [Parent Company Statement of Changes in Owners' Equity](index=56&type=section&id=Parent%20Company%20Statement%20of%20Changes%20in%20Owners%27%20Equity) In the first half of 2020, the parent company's total owners' equity increased by 53.44 million yuan, mainly driven by a net profit of 92.67 million yuan, partially offset by a 39.22 million yuan decrease in other comprehensive income Parent Company Statement of Changes in Owners' Equity | Item | Opening Balance (yuan) | Change in Current Period (yuan) | Closing Balance (yuan) | | :--- | :--- | :--- | :--- | | Total Owners' Equity | 4,599,513,224.37 | 53,444,506.68 | 4,652,957,731.05 | [Basis of Financial Statement Preparation](index=60&type=section&id=Basis%20of%20Financial%20Statement%20Preparation) The company's financial statements are prepared on a going concern basis, in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance, with no significant doubts about its ability to continue as a going concern for the next 12 months - The company prepares its financial statements on a going concern basis, recognizing and measuring transactions and events in accordance with the Accounting Standards for Business Enterprises - Basic Standards and specific accounting standards, application guidelines, interpretations, and other relevant regulations issued by the Ministry of Finance[112](index=112&type=chunk) - The company has no matters or circumstances that would cause significant doubt about its ability to continue as a going concern for the 12 months from the end of the reporting period[113](index=113&type=chunk) [Company's Major Accounting Policies, Accounting Estimates, and Prior Period Errors](index=60&type=section&id=Company%27s%20Major%20Accounting%20Policies%2C%20Accounting%20Estimates%2C%20and%20Prior%20Period%20Errors) This section details the company's key accounting policies and estimates, including financial instruments, receivables, inventories, fixed assets, intangible assets, and revenue recognition, noting the adoption of new revenue standards in 2020 - The financial statements prepared by the company comply with the requirements of the Accounting Standards for Business Enterprises, truthfully and completely reflecting the company's financial position, operating results, and cash flows[115](index=115&type=chunk) - The company adopted the new revenue standard from January 1, 2020, reclassifying customer prepayments to contract liabilities and other current liabilities[167](index=167&type=chunk)[171](index=171&type=chunk)[175](index=175&type=chunk) Impact of New Revenue Standard Adjustment on Consolidated Balance Sheet (January 1, 2020) | Item | December 31, 2019 (yuan) | January 1, 2020 (yuan) | Adjustment Amount (yuan) | | :--- | :--- | :--- | :--- | | Advances from Customers | 142,746,424.67 | - | -142,746,424.67 | | Contract Liabilities | - | 126,324,269.63 | 126,324,269.63 | | Other Current Liabilities | 2,438,161.36 | 18,860,316.40 | 16,422,155.04 | [Taxation](index=82&type=section&id=Taxation) The company's main taxes include corporate income tax (25%), VAT (16%, 13%, with gold products exempt), urban construction tax (1%, 5%, 7%), education surcharge (5%), and resource tax (ranging from 3% to 7% for various minerals), with no tax incentives during the reporting period Main Tax Types and Rates | Tax Type | Tax Rate | | :--- | :--- | | Corporate Income Tax | 25% | | Value-Added Tax | 16%, 13% (gold products exempt) | | Urban Construction Tax | 1%, 5%, 7% | | Education Surcharge | 5% | | Resource Tax | Lead, Zinc ore 6%; Silver, Iron ore 5%; Tin ore 3%; Copper ore 7%; Tungsten ore 6.5% | - The company had no tax incentives or approvals during the reporting period[177](index=177&type=chunk) [Notes to Major Items of Consolidated Financial Statements](index=83&type=section&id=Notes%20to%20Major%20Items%20of%20Consolidated%20Financial%20Statements) This section provides detailed notes for each major item in the consolidated financial statements, covering monetary funds, receivables, inventories, fixed assets, intangible assets, borrowings, payables, employee compensation, taxes, and various gains and losses, along with disclosures on restricted assets, financial instrument risks, and fair value measurements [Monetary Funds](index=83&type=section&id=Monetary%20Funds) The period-end balance of monetary funds was 34.22 million yuan, a significant decrease from the opening balance of 227.58 million yuan, with restricted funds totaling 7.45 million yuan primarily due to frozen bank deposits and environmental governance deposits Monetary Funds Detailed Classification | Item | Period-end Balance (yuan) | Opening Balance (yuan) | | :--- | :--- | :--- | | Cash | 333,438.52 | 412,970.08 | | Bank Deposits | 26,518,995.46 | 207,164,379.58 | | Other Monetary Funds | 7,365,565.38 | 20,000,253.17 | | Total | 34,217,999.36 | 227,577,602.83 | - The total restricted monetary funds at period-end amounted to 7,446,226.66 yuan, including bank deposits of 80,661.28 yuan frozen due to contract disputes and environmental governance deposits of 7,365,565.38 yuan[179](index=179&type=chunk) [Accounts Receivable](index=83&type=section&id=Accounts%20Receivable) The period-end book value of accounts receivable was 72.05 million yuan, with a bad debt provision of 9.15 million yuan, representing an impairment rate of 11.27%, primarily concentrated in receivables due within one to two years Accounts Receivable by Category | Category | Book Balance (yuan) | Proportion (%) | Bad Debt Provision (yuan) | Impairment Rate (%) | Book Value (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Bad debt provision calculated by portfolio | 81,202,619.51 | 100.00 | 9,148,389.91 | 11.27 | 72,054,229.60 | Accounts Receivable by Aging | Aging | Period-end Book Balance (yuan) | | :--- | :--- | | Within 1 year | 963,069.94 | | 1 to 2 years | 79,043,681.29 | | Over 5 years | 1,195,868.28 | | Total | 81,202,619.51 | [Prepayments](index=84&type=section&id=Prepayments) The period-end balance of prepayments was 11.11 million yuan, a significant increase from the opening balance of 4.41 million yuan, with 91.29% of prepayments due within one year, and the top five prepayments accounting for 80.69% of the total Prepayments by Aging | Aging | Period-end Balance (yuan) | Proportion (%) | Opening Balance (yuan) | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Within 1 year | 10,145,067.21 | 91.29 | 3,219,819.70 | 73.08 | | 1 to 2 years | 286,769.57 | 2.58 | 663,764.48 | 15.06 | | 2 to 3 years | 118,553.70 | 1.07 | 2,830.19 | 0.06 | | Over 3 years | 562,597.74 | 5.06 | 520,007.38 | 11.80 | | Total | 11,112,988.22 | 100.00 | 4,406,421.75 | 100.00 | - The aggregated amount of the top five prepayments by payee at period-end was 8,967,438.29 yuan, accounting for **80.69% of the total prepayments** at period-end[186](index=186&type=chunk) [Other Receivables](index=85&type=section&id=Other%20Receivables) The period-end book balance of other receivables was 295.03 million yuan, with a bad debt provision of 53.83 million yuan, primarily comprising equity transfer payments, performance compensation, related party current accounts, and investment earnest money Other Receivables by Nature of Funds | Nature of Funds | Period-end Book Balance (yuan) | Opening Book Balance (yuan) | | :--- | :--- | :--- | | Equity transfer payment | 105,952,501.00 | 105,952,501.00 | | Performance compensation | 86,519,284.27 | 86,519,284.27 | | Related party current accounts | 50,770,831.01 | 63,166,900.00 | | Investment earnest money | 40,000,000.00 | 40,000,000.00 | | Total | 295,030,308.42 | 307,175,868.98 | Other Receivables Bad Debt Provision Accrual | Bad Debt Provision | Balance as of January 1, 2020 (yuan) | Accrued in Current Period (yuan) | Balance as of June 30, 2020 (yuan) | | :--- | :--- | :--- | :--- | | Total | 48,519,015.32 | 5,310,150.47 | 53,829,165.79 | - The company recognized a full impairment provision for dividends receivable from Baoshang Bank Co., Ltd. due to its severe credit risk[189](index=189&type=chunk) Top Five Other Receivables by Debtor at Period-end | Unit Name | Nature of Funds | Period-end Balance (yuan) | Aging | % of Total Other Receivables | Period-end Bad Debt Provision (yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Linxi Yixin Mining Co., Ltd | Equity transfer payment | 105,952,501.00 | Within 1 year | 35.91 | 5,297,625.05 | | Inner Mongolia Xingye Group Co., Ltd | Performance compensation | 86,519,284.27 | Within 3 years | 29.33 | 17,303,856.85 | | Anhui Xinhua Financial Group Co., Ltd | Investment earnest money | 40,000,000.00 | 1 to 2 years | 13.56 | 4,000,000.00 | | Kunming Dongchuan Tongdu Mining Co., Ltd | Related party current accounts | 34,098,000.00 | 1 to 2 years | 11.56 | 1,704,900.00 | | Bairin Right Banner Juyuan Mining Co., Ltd | Related party current accounts | 16,672,831.01 | Within 3 years | 5.65 | 16,672,831.01 | [Inventories](index=88&type=section&id=Inventories) The period-end book value of inventories was 151.95 million yuan, an increase from the opening balance of 140.92 million yuan, with inventory impairment provisions totaling 1.63 million yuan, mainly for raw materials, work-in-progress, and finished goods Inventory Classification and Impairment Provisions | Item | Period-end Book Value (yuan) | Opening Book Value (yuan) | | :--- | :--- | :--- | | Raw Materials | 73,196,355.28 | 73,358,863.84 | | Work-in-progress | 48,639,566.30 | 41,953,817.35 | | Finished Goods | 27,968,021.20 | 25,599,362.15 | | Total | 151,948,603.66 | 140,921,388.47 | | Total Inventory Impairment Provisions | 1,626,041.96 | 1,415,749.99 | [Other Current Assets](index=88&type=section&id=Other%20Current%20Assets) The period-end total of other current assets was 80.01 million yuan, primarily consisting of deductible input VAT of 76.66 million yuan and deferred expenses of 3.34 million yuan Other Current Assets Details | Item | Period-end Balance (yuan) | Opening Balance (yuan) | | :--- | :--- | :--- | | Deductible Input VAT | 76,663,334.45 | 75,226,011.30 | | Deferred Expenses - Rent | 3,337,012.75 | - | | Prepaid Taxes | 11,552.33 | 4,939.16 | | Deferred Expenses - Heating | - | 283,342.17 | | Total | 80,011,899.53 | 75,514,292.63 | [Long-term Equity Investments](index=89&type=section&id=Long-term%20Equity%20Investments) The period-end book value of long-term equity investments was 490.17 million yuan, mainly comprising investments in joint venture Tongdu Mining and associate Tiantong Mining, with an investment loss of 3.68 million yuan for the current period Long-term Equity Investments | Investee | Opening Balance (yuan) | Investment Gains/Losses Recognized under Equity Method (yuan) | Closing Balance (yuan) | | :--- | :--- | :--- | :--- | | Kunming Dongchuan Tongdu Mining Co., Ltd | 289,558,186.24 | -1,849,652.73 | 287,708,533.51 | | Chen Barag Banner Tiantong Mining Co., Ltd | 204,292,197.66 | -1,830,995.39 | 202,461,202.27 | | Total | 493,850,383.90 | -3,680,648.12 | 490,169,735.78 | [Other Equity Instrument Investments](index=89&type=section&id=Other%20Equity%20Instrument%20Investments) The period-end balance of other equity instrument investments was 215.20 million yuan, a decrease from the opening balance of 267.50 million yuan, with the investment in Baoshang Bank Co., Ltd. having a fair value of zero due to severe credit risk Other Equity Instrument Investments | Item | Period-end Balance (yuan) | Opening Balance (yuan) | | :--- | :--- | :--- | | China Credit Trust Co., Ltd | 215,200,000.00 | 257,812,750.91 | | Baoshang Bank Co., Ltd | - | 9,682,620.00 | | Total | 215,200,000.00 | 267,495,370.91 | - The equity investment in Baoshang Bank Co., Ltd. had a fair value of zero at period-end due to its severe insolvency[198](index=198&type=chunk) [Fixed Assets](index=91&type=section&id=Fixed%20Assets) The period-end book value of fixed assets was 2.99 billion yuan, an increase from the opening balance of 2.91 billion yuan, with 154.22 million yuan transferred from construction in progress and 352.38 million yuan of fixed assets lacking property certificates Fixed Assets Classification | Item | Period-end Book Value (yuan) | Opening Book Value (yuan) | | :--- | :--- | :--- | | Buildings and Structures | 1,671,065,535.27 | 1,697,822,139.39 | | Shaft Engineering Assets | 827,735,320.98 | 687,358,827.81 | | Machinery and Equipment | 467,133,774.97 | 491,495,079.01 | | Transportation Equipment | 14,351,209.32 | 24,926,190.38 | | Other Equipment | 13,826,154.83 | 12,635,934.18 | | Total | 2,994,111,995.37 | 2,914,238,170.77 | - The original value of fixed assets increased by 164.72 million yuan in the current period, of which 154.22 million yuan was transferred from construction in progress[201](index=201&type=chunk) - The net value of fixed assets for which property certificates had not yet been obtained at period-end was **352.38 million yuan**[204](index=204&type=chunk) [Construction in Progress](index=95&type=section&id=Construction%20in%20Progress) The period-end book value of construction in progress was 751.48 million yuan, a decrease from the opening balance of 877.78 million yuan, with major projects including Qianjinda Mining's silver-lead-zinc polymetallic mining and beneficiation project, which transferred 153.27 million yuan to fixed assets Construction in Progress | Item | Period-end Balance (yuan) | Opening Balance (yuan) | | :--- | :--- | :--- | | Construction in Progress | 741,521,082.86 | 867,793,595.09 | | Engineering Materials | 9,954,760.47 | 9,986,159.59 | | Total | 751,475,843.33 | 877,779,754.68 | Major Construction in Progress Projects | Project Name | Budget (yuan) | Period-end Book Value (yuan) | Project Progress (%) | Source of Funds | | :--- | :--- | :--- | :--- | :--- | | Qianjinda Mining - Silver-Lead-Zinc Polymetallic Mine 300,000 tons/year Mining and Beneficiation Project | 527,610,000.00 | 296,933,812.06 | 85.33% | Own funds | | Tanghe Times - Copper-Nickel Mine 3.3 million tons/year Mining and Beneficiation Project | 1,137,490,000.00 | 354,992,361.37 | 31.21% | Own funds and special borrowings | | Ruineng Mining - Dazuozi Mountain Lead-Zinc Mine Shaft Construction Project | 36,216,100.00 | 35,311,449.00 | 97.50% | Own funds | - Qianjinda Mining's silver-lead-zinc polymetallic mining and beneficiation project transferred 153.27 million yuan to fixed assets in the current period[207](index=207&type=chunk) [Intangible Assets](index=98&type=section&id=Intangible%20Assets) The period-end book value of intangible assets was 3.37 billion yuan, primarily comprising mining rights, exploration and development costs, and geological results totaling 3.19 billion yuan, and land use rights of 174.45 million yuan Intangible Assets Classification | Item | Period-end Book Value (yuan) | Opening Book Value (yuan) | | :--- | :--- | :--- | | Land Use Rights | 174,446,330.30 | 153,418,123.11 | | Mining Rights, Exploration and Development Costs, and Geological Results | 3,187,611,889.12 | 3,208,213,524.81 | | Software Use Rights | 3,433,903.72 | 2,867,438.28 | | Total | 3,365,492,123.14 | 3,364,499,086.20 | - The original value of intangible assets increased by 23.76 million yuan in the current period, and accumulated amortization increased by 22.77 million yuan[211](index=211&type=chunk) [Goodwill](index=98&type=section&id=Goodwill) The period-end book value of goodwill was 193.43 million yuan, mainly from Zhengxiangbai Qi Qianjinda Mining Co., Ltd., with no changes or impairment provisions recognized in the current period Goodwill Book Value | Name of Investee or Event Forming Goodwill | Opening Balance (yuan) | Period-end Balance (yuan) | | :--- | :--- | :--- | | Xiwuzhumuqin Qi Yitong Mining Co., Ltd | 36,124.55 | 36,124.55 | | Zhengxiangbai Qi Qianjinda Mining Co., Ltd | 193,396,894.32 | 193,396,894.32 | | Total | 193,433,018.87 | 193,433,018.87 | - There were no changes in goodwill or impairment provisions recognized in the current period[212](index=212&type=chunk) [Long-term Deferred Expenses](index=99&type=section&id=Long-term%20Deferred%20Expenses) The period-end balance of long-term deferred expenses was 35.20 million yuan, primarily consisting of temporary land use expenditures, with an increase of 1.92 million yuan and amortization of 0.96 million yuan in the current period Long-term Deferred Expenses Details | Item | Opening Balance (yuan) | Increase in Current Period (yuan) | Amortization in Current Period (yuan) | Period-end Balance (yuan) | | :--- | :--- | :--- | :--- | | Temporary Land Use Expenditures | 34,217,514.50 | 1,916,867.99 | 955,242.25 | 35,179,140.24 | | Equipment Lease | 23,664.71 | - | 5,194.68 | 18,470.03 | | Total | 34,241,179.21 | 1,916,867.99 | 960,436.93 | 35,197,610.27 | [Deferred Income Tax Assets and Liabilities](index=99&type=section&id=Deferred%20Income%20Tax%20Assets%20and%20Liabilities) The period-end total deferred income tax assets were 310.81 million yuan, mainly from uncompensated losses and fixed asset depreciation, while deferred income tax liabilities totaled 431.14 million yuan, primarily from asset revaluation gains and fair value changes of other equity instruments Recognized Deferred Income Tax Assets | Item | Period-end Deferred Income Tax Assets (yuan) | Opening Deferred Income Tax Assets (yuan) | | :--- | :--- | :--- | | Uncompensated Losses | 241,965,671.46 | 189,710,230.51 | | Fixed Asset Depreciation | 25,564,821.76 | 28,197,445.05 | | Bad Debt Provisions | 15,502,864.00 | 14,167,491.87 | | Total | 310,809,845.98 | 244,061,995.72 | Recognized Deferred Income Tax Liabilities | Item | Period-end Deferred Income Tax Liabilities (yuan) | Opening Deferred Income Tax Liabilities (yuan) | | :--- | :--- | :--- | | Asset Revaluation Gains | 337,265,056.00 | 341,578,178.30 | | Fair Value Changes of Other Equity Instrument Investments | 37,696,297.65 | 48,349,485.37 | | Total | 431,135,019.24 | 444,900,956.83 | - Unrecognized deductible losses for deferred income tax assets totaled **321.51 million yuan**, expiring between 2020 and 2025[216](index=216&type=chunk) [Other Non-current Assets](index=100&type=section&id=Other%20Non-current%20Assets) The period-end total of other non-current assets was 104.44 million yuan, primarily comprising prepaid land acquisition fees of 69.11 million yuan, prepaid equipment purchases of 17.93 million yuan, and prepaid engineering costs of 15.91 million yuan Other Non-current Assets Details | Item | Period-end Balance (yuan) | Opening Balance (yuan) | | :--- | :--- | :--- | | Prepaid Land Acquisition Fees | 69,113,809.88 | 82,760,293.35 | | Prepaid Equipment Purchases | 17,929,130.17 | 16,128,769.53 | | Prepaid Engineering Costs | 15,907,961.34 | 864,202.26 | | Prepaid Exploration Fees | 1,485,525.21 | 1,485,525.21 | | Total | 104,436,426.60 | 101,238,790.35 | [Short-term Borrowings](index=100&type=section&id=Short-term%20Borrowings) The period-end total of short-term borrowings was 545.90 million yuan, primarily consisting of secured and guaranteed borrowings, with intere

Report Overview [Overall Performance](index=3&type=section&id=%E6%95%B4%E4%BD%93%E4%B8%9A%E7%BB%A9%E8%A1%A8%E7%8E%B0) The company's Q1-Q3 2019 performance was severely impacted by a major safety accident and production halt at Yinman Mining, resulting in a sharp revenue decline, net loss, and reduced operating cash flow, compounded by controlling shareholder issues - The primary cause of performance decline was the major safety accident at wholly-owned subsidiary Yinman Mining on February 23, 2019, leading to its ordered production halt and a significant decrease in mineral product output and sales, fundamentally deteriorating revenue, profit, and cash flow metrics[11](index=11&type=chunk)[13](index=13&type=chunk)[17](index=17&type=chunk) - Controlling shareholder Xingye Group entered court-ordered restructuring due to inability to repay debts, with most of its company shares pledged and frozen, posing a potential threat to the company's equity structure stability[7](index=7&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk) - Controlling shareholder Xingye Group has an overdue unpaid compensation of **CNY 86.5193 million** for unfulfilled performance commitments by Rongbang Mining and Tanghe Times in 2017 and 2018, highlighting its financial distress[21](index=21&type=chunk)[23](index=23&type=chunk) Company Profile [Key Accounting Data and Financial Indicators](index=3&type=section&id=%E4%B8%80%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) Total assets slightly increased, but operating performance sharply declined, with revenue significantly down and net profit turning from a profit to a loss Key Financial Indicators (Year-to-Date) | Indicator (Year-to-date) | Q1-Q3 2019 | YoY Change | | :--- | :--- | :--- | | Operating Revenue (CNY) | 564,119,613.63 | -68.39% | | Net Profit Attributable to Shareholders of Listed Company (CNY) | -102,858,999.53 | -118.14% | | Net Cash Flow from Operating Activities (CNY) | 275,114,594.53 | -71.85% | | Basic Earnings Per Share (CNY/share) | -0.0560 | -118.44% | | Weighted Average Return on Net Assets | -1.98% | -11.93% | - Total non-recurring gains and losses amounted to **-CNY 35.6668 million**, primarily from other non-operating expenses, negatively impacting net profit[5](index=5&type=chunk) [Shareholder Information](index=4&type=section&id=%E4%BA%8C%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E5%8F%8A%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) The controlling shareholder's 30.27% stake was fully pledged and frozen, indicating severe liquidity issues, with other top shareholders also having high pledge ratios Top Ten Shareholders and Their Shareholding Status | Shareholder Name | Shareholding Ratio | Number of Shares | Pledge/Freeze Status | | :--- | :--- | :--- | :--- | | Inner Mongolia Xingye Group Co., Ltd. | 30.27% | 556,075,350 | Pledged 555,000,086; Frozen 556,075,350 | | Gansu Northwest Mining Group Co., Ltd. | 7.94% | 145,823,042 | Pledged 145,823,042; Frozen 145,823,042 | | Chifeng Fulong Public (Group) Co., Ltd. | 7.52% | 138,184,794 | Pledged 40,000,000 | | Li Xianlai | 6.00% | 110,241,798 | Pledged 110,239,999 | - Certain shareholders have related party relationships, such as natural person shareholders Ji Xiang and Ji Wei, who are children of the controlling shareholder's actual controller Ji Xingye[8](index=8&type=chunk) Significant Matters [Analysis of Significant Changes in Financial Indicators and Their Causes](index=6&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E5%8F%91%E7%94%9F%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) Multiple financial indicators fluctuated sharply due to Yinman Mining's production halt, significantly impacting revenue, costs, and operating cash flow, alongside increased administrative expenses and surging short-term debt - Operating revenue, total profit, and net profit attributable to shareholders significantly declined year-on-year, primarily due to decreased mineral product output and sales following the Yinman Mining '2·23' safety accident[11](index=11&type=chunk)[13](index=13&type=chunk) - Administrative expenses increased by **35.84%** year-on-year, primarily due to idle losses related to Yinman Mining's production halt being recognized in current period profit and loss[12](index=12&type=chunk) - Non-current liabilities due within one year increased by **446.32%** from the beginning of the year, primarily due to the reclassification of long-term borrowings, significantly increasing short-term repayment pressure[11](index=11&type=chunk) - Net cash flow from operating activities decreased by **71.85%** year-on-year, primarily due to a reduction in cash received from sales of goods impacted by the accident[13](index=13&type=chunk) [Progress of Significant Events](index=8&type=section&id=%E4%BA%8C%E3%80%81%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9%E8%BF%9B%E5%B1%95%E6%83%85%E5%86%B5%E5%8F%8A%E5%85%B6%E5%BD%B1%E5%93%8D%E5%92%8C%E8%A7%A3%E5%86%B3%E6%96%B9%E6%A1%88%E7%9A%84%E5%88%86%E6%9E%90%E8%AF%B4%E6%98%8E) The company faced three core challenges: Yinman Mining's major safety accident, controlling shareholder Xingye Group's judicial restructuring, and unfulfilled performance compensation commitments [Progress of Subsidiary's Major Safety Accident](index=9&type=section&id=%E5%AD%90%E5%85%AC%E5%8F%B8%E9%87%8D%E5%A4%A7%E5%AE%89%E5%85%A8%E4%BA%8B%E6%95%85%E8%BF%9B%E5%B1%95) Wholly-owned subsidiary Yinman Mining remains suspended since February 24, 2019, due to a major safety accident, posing a continuous significant adverse impact on operating performance - Yinman Mining remains suspended, awaiting government administrative penalty decisions and rectification notices, with the company actively implementing rectifications to achieve early resumption of operations[17](index=17&type=chunk) [Controlling Shareholder Restructuring Matters](index=8&type=section&id=%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E9%87%8D%E6%95%B4%E4%BA%8B%E9%A1%B9) Controlling shareholder Xingye Group entered court-ordered restructuring due to its inability to repay debts, potentially leading to a change in company control and significant future uncertainty - Chifeng Intermediate People's Court accepted the restructuring application for controlling shareholder Xingye Group on October 8, 2019, formally initiating the restructuring process[16](index=16&type=chunk) [Overdue Unfulfilled Commitments](index=11&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E3%80%81%E8%82%A1%E4%B8%9C%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E3%80%81%E6%94%B6%E8%B4%AD%E4%BA%BA%E4%BB%A5%E5%8F%8A%E5%85%AC%E5%8F%B8%E7%AD%89%E6%89%BF%E8%AF%BA%E7%9B%B8%E5%85%B3%E6%96%B9%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) Controlling shareholder Xingye Group failed to meet performance commitments for Tanghe Times and Rongbang Mining, with CNY 86.5193 million in compensation remaining unpaid and constituting a breach - Xingye Group has not paid **CNY 86.5193 million** in performance compensation to the company due to Tanghe Times and Rongbang Mining failing to meet their 2017 and 2018 performance targets[23](index=23&type=chunk) [Share Repurchase Progress](index=10&type=section&id=%E8%82%A1%E4%BB%BD%E5%9B%9E%E8%B4%AD%E7%9A%84%E5%AE%9E%E6%96%BD%E8%BF%9B%E5%B1%95%E6%83%85%E5%86%B5) The company completed its share repurchase plan, repurchasing 31.3083 million shares for approximately CNY 200 million, with all repurchased shares cancelled - The company completed its share repurchase with a total transaction amount of **CNY 199.9 million**, and the shares have been cancelled, resulting in a corresponding reduction in total share capital[19](index=19&type=chunk)[20](index=20&type=chunk) Financial Statement Analysis [Consolidated Income Statement](index=18&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) Total operating revenue significantly declined to CNY 564 million, while total operating costs were CNY 637 million, resulting in a total profit of -CNY 114 million and a net loss attributable to shareholders of -CNY 103 million Consolidated Income Statement (Year-to-Date) | Item (Year-to-Date) | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 564,119,613.63 | 1,784,788,856.71 | | Total Operating Costs | 636,694,621.68 | 1,024,469,505.88 | | Total Profit | -114,135,121.90 | 761,290,550.68 | | Net Profit Attributable to Owners of the Parent Company | -102,858,999.53 | 567,151,832.56 | [Consolidated Cash Flow Statement](index=24&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Net operating cash flow significantly decreased to CNY 275 million, driven by a sharp decline in cash from sales; net cash outflows from investing and financing activities were CNY 168 million and CNY 119 million, respectively Consolidated Cash Flow Statement (Year-to-Date) | Item (Year-to-Date) | Current Period Amount (CNY) | Prior Period Amount (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 275,114,594.53 | 977,281,179.05 | | Net Cash Flow from Investing Activities | -167,870,144.69 | -811,659,969.62 | | Net Cash Flow from Financing Activities | -119,070,303.53 | -615,984,577.12 | | Net Increase in Cash and Cash Equivalents | -11,825,853.69 | -450,363,367.69 | [Explanation of Accounting Standard Changes](index=26&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E8%B0%83%E6%95%B4%E6%83%85%E5%86%B5%E8%AF%B4%E6%98%8E) Effective January 1, 2019, the company adopted new financial instrument standards, reclassifying certain investments to 'other equity instrument investments' measured at fair value, impacting opening equity and deferred tax liabilities - Under new financial instrument standards, **CNY 74.0974 million** of 'available-for-sale financial assets' were reclassified to 'other equity instrument investments', with the adjusted amount being **CNY 250.1060 million**, and the difference recognized in other comprehensive income and deferred income tax liabilities[42](index=42&type=chunk)[44](index=44&type=chunk)

Section I [Important Notes, Table of Contents, and Definitions](index=2&type=section&id=Section%20I.%20Important%20Notes%2C%20Table%20of%20Contents%2C%20and%20Definitions) This section provides essential disclaimers, outlines the report's structure, and defines key terms and the reporting period [Important Notes](index=2&type=section&id=Important%20Notes) The company's management assures the report's accuracy, highlights key business risks, and confirms no profit distribution for the period - The company's Board of Directors, Supervisory Board, and senior management ensure the truthfulness, accuracy, and completeness of the report and assume corresponding legal responsibilities[4](index=4&type=chunk) - The company advises investors to be aware of potential risks in its main business, including price fluctuations, industry cyclicality, and production safety[4](index=4&type=chunk) - The company plans no cash dividends, bonus shares, or capital increase from capital reserves for the 2019 semi-annual period[4](index=4&type=chunk) [Table of Contents](index=3&type=section&id=Table%20of%20Contents) This report is structured into eleven chapters, covering company overview, financial indicators, business summary, operational discussion, significant events, shareholder information, and financial reports - The report features a clear, eleven-section structure, comprehensively covering information from the company's basic situation to financial details[5](index=5&type=chunk) [Definitions](index=4&type=section&id=Definitions) This chapter defines key abbreviations used in the report, including regulatory bodies, the company itself, its major holding shareholders, and subsidiaries, clarifying the reporting period from January 1 to June 30, 2019 - "Company/This Company" refers to Inner Mongolia Xingye Mining Co., Ltd., with key subsidiaries like Xingye Group and Yinman Mining also defined by their abbreviations[7](index=7&type=chunk) - The reporting period is defined as January 1, 2019, to June 30, 2019[7](index=7&type=chunk) Section II [Company Profile and Key Financial Indicators](index=5&type=section&id=Section%20II.%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section presents the company's fundamental information and a summary of its financial performance during the reporting period [Company Profile](index=5&type=section&id=Company%20Profile) This chapter provides the company's basic information, including its stock ticker "Xingye Mining," stock code "000426," full name, legal representative, and contact details for the Board Secretary and Securities Affairs Representative, noting no changes in contact information or disclosure locations during the reporting period - The company's stock ticker is "Xingye Mining," stock code is 000426, listed on the Shenzhen Stock Exchange[8](index=8&type=chunk) - The company's legal representative is Ji Xingye[8](index=8&type=chunk) [Key Accounting Data and Financial Indicators](index=6&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, the company's financial performance significantly declined, with revenue decreasing by 70.15% year-over-year and net profit attributable to shareholders turning from profit to loss, down 121.23%, primarily due to subsidiary production halts | Indicator | Current Period | Prior Year Period | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 337,755,185.38 | 1,131,633,023.26 | -70.15% | | Net Profit Attributable to Shareholders (RMB) | -78,041,673.15 | 367,611,001.51 | -121.23% | | Net Cash Flow from Operating Activities (RMB) | 181,605,334.22 | 362,429,499.74 | -49.89% | | Basic Earnings Per Share (RMB/share) | -0.0425 | 0.1966 | -121.62% | | Weighted Average Return on Net Assets | -1.50% | 6.56% | -8.06% | | Total Assets (RMB) | 9,009,623,473.59 | 8,933,497,776.05 | 0.85% | | Item | Amount (RMB) | | :--- | :--- | | Non-current asset disposal gains/losses | 798,928.60 | | Government grants recognized in current profit/loss | 159,405.43 | | Other non-operating income/expenses | -21,078,139.44 | | **Total** | **-20,256,761.08** | Section III [Company Business Overview](index=8&type=section&id=Section%20III.%20Company%20Business%20Overview) This section details the company's primary business activities, significant asset changes, and core competitive advantages [Primary Business Activities](index=8&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company's main business involves the mining, dressing, and smelting of non-ferrous and precious metals, operating through four segments: mining, smelting, investment, and trading, with non-ferrous metal mining being the primary revenue driver - The company's main business is non-ferrous and precious metal mining and smelting, divided into four segments: mining, smelting, investment, and trading[18](index=18&type=chunk) - Key products include concentrates of lead, zinc, silver, tin, copper, and iron, along with associated metals like bismuth and tungsten[19](index=19&type=chunk) - Non-ferrous metal mining and dressing business is the company's core revenue source, accounting for **99.52% of total operating revenue** in the first half of 2019[28](index=28&type=chunk) [Significant Changes in Major Assets](index=11&type=section&id=%E4%BA%8C%E3%80%81%E4%B8%BB%E8%A6%81%E8%B5%84%E4%BA%A7%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8C%96%E6%83%85%E5%86%B5) During the reporting period, there were no significant changes in the company's major asset categories, including equity investments, fixed assets, intangible assets, and construction in progress, nor did it hold significant overseas assets - During the reporting period, the company's major assets, including equity investments, fixed assets, intangible assets, and construction in progress, did not undergo significant changes[29](index=29&type=chunk) [Core Competitiveness Analysis](index=11&type=section&id=%E4%B8%89%E3%80%81%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competitiveness stems from its advantageous location in Inner Mongolia, substantial high-grade multi-metal mineral resources, commitment from its controlling shareholder to inject quality assets, and an experienced management and technical team with leading process equipment - The company's location in resource-rich Inner Mongolia provides a unique geographical advantage, facilitating resource integration and expansion[31](index=31&type=chunk) - It possesses large-scale, high-grade multi-metal resource reserves, with its subsidiary Yinman Mining being the largest silver production mine in China[32](index=32&type=chunk) - The controlling shareholder, Xingye Group, has committed to transferring relevant assets to the listed company once exploration rights are converted to mining rights, ensuring continuous resource supply[33](index=33&type=chunk) - The company boasts an experienced management and technical team, utilizing industry-leading equipment and automated control technologies[34](index=34&type=chunk) Section IV [Discussion and Analysis of Operations](index=13&type=section&id=Section%20IV.%20Discussion%20and%20Analysis%20of%20Operations) This section provides an overview of the company's operational performance, detailed analysis of its main business, asset and liability status, and key risks with corresponding countermeasures [Overview](index=13&type=section&id=%E4%B8%80%E3%80%81%E6%A6%82%E8%BF%B0) In the first half of 2019, the company's operating performance significantly declined due to the "2·23" major transportation safety accident at its subsidiary Yinman Mining, leading to production halts and a substantial drop in revenue and net profit | Indicator | H1 2019 | Year-over-Year Change | | :--- | :--- | :--- | | Operating Revenue | 338 million RMB | -70.15% | | Total Profit | -89 million RMB | -117.99% | | Net Profit Attributable to Parent | -78 million RMB | -121.23% | - The primary reason for the performance decline was the production halt and rectification at subsidiary Yinman Mining since February 24, 2019, following the "2·23" major transportation safety accident[35](index=35&type=chunk) - Subsidiaries Rongguan Mining and Xilin Mining have fully resumed production after their halts; Qianjinda Mining awaits inspection approval to resume construction; Rongbang Mining is expected to commence formal production by year-end[35](index=35&type=chunk) [Analysis of Main Business](index=14&type=section&id=%E4%BA%8C%E3%80%81%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) Due to the production halt at Yinman Mining, the company's main business indicators experienced significant declines, with operating revenue and cost decreasing by 70.15% and 59.92% respectively, while management expenses surged by 50.79% due to the inclusion of shutdown losses | Item | Current Period (RMB) | Year-over-Year Change | Primary Reason | | :--- | :--- | :--- | :--- | | Operating Revenue | 337,755,185.38 | -70.15% | Decreased production and sales due to Yinman Mining's shutdown | | Operating Cost | 158,135,878.43 | -59.92% | Decreased production and sales | | Management Expenses | 134,239,449.59 | 50.79% | Shutdown losses at Yinman Mining recognized in current period | | Net Cash Flow from Operating Activities | 181,605,334.22 | -49.89% | Decrease in cash received from sales of goods | | Product | Operating Revenue (RMB) | Revenue Year-over-Year Change | | :--- | :--- | :--- | | Zinc Concentrate | 182,327,393.46 | -69.86% | | Iron Concentrate | 56,174,247.10 | +56.93% | | Copper-bearing Silver Concentrate | 30,249,672.89 | -85.41% | | Tin Concentrate | 38,386,777.14 | -80.13% | - The mining industry, as the company's main business, had a gross profit margin of **53.43%**, a decrease of **11.94 percentage points** compared to the same period last year[39](index=39&type=chunk) [Analysis of Assets and Liabilities](index=15&type=section&id=%E5%9B%9B%E3%80%81%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5) At the end of the reporting period, the company's total assets slightly increased by 0.85% to 9.01 billion RMB, with significant changes in cash due to lower sales and debt repayments, and a reclassification of long-term borrowings to current liabilities | Major Asset/Liability | Period-end Amount (RMB) | % of Total Assets | Explanation for Change from Prior Year-end | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 21,814,377.76 | 0.24% | Decreased due to lower production/sales and repayment of payables | | Long-term Equity Investments | 291,339,613.24 | 3.23% | Resulting from the acquisition of 49% equity in Tongdu Mining in 2018 | | Fixed Assets | 2,970,702,484.11 | 32.97% | Decreased due to significant impairment losses recognized at the end of 2018 | | Long-term Borrowings | 544,538,903.11 | 6.04% | Portion of borrowings reclassified to non-current liabilities due within one year | - The company's assets measured at fair value primarily consist of other equity instrument investments, with a period-end balance of **257 million RMB**[43](index=43&type=chunk) [Analysis of Major Holding and Participating Companies](index=18&type=section&id=%E4%B8%83%E3%80%81%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) This chapter details the financial status of the company's 14 major subsidiaries, highlighting Rongguan Mining as the primary profit contributor with a net profit of 66.69 million RMB, while Xilin Mining, Tanghe Times Mining, and Yinman Mining reported losses, with Yinman Mining's loss of 22.84 million RMB attributed to its production halt | Subsidiary Name | Main Business | Operating Revenue (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | | Inner Mongolia Xingye Group Rongguan Mining Co., Ltd. | Non-ferrous metal mining and dressing | 218.05 million | 66.69 million | | Xiwuzhumuqinqi Yinman Mining Co., Ltd. | Non-ferrous metal mining and dressing | 94.22 million | -22.84 million | | Inner Mongolia Xingye Group Xilin Mining Co., Ltd. | Non-ferrous metal mining and dressing | 2.13 million | -25.43 million | | Tanghe Times Mining Co., Ltd. | Non-ferrous metal mining and dressing | 0.51 million | -15.82 million | [Risks and Countermeasures](index=19&type=section&id=%E4%B9%9D%E3%80%81%E5%85%AC%E5%8F%B8%E9%9D%A2%E4%B8%B4%E7%9A%84%E9%A3%8E%E9%99%A9%E5%92%8C%E5%BA%94%E5%AF%B9%E6%8E%AA%E6%96%BD) The company faces three primary risks: market price fluctuations, production safety, and environmental protection, which it plans to address through industrial structure adjustments, increased safety investments, and improved environmental management systems - Key risks include: market price fluctuations of non-ferrous metals, production safety hazards in mining operations, and environmental impact from mining and dressing activities[51](index=51&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk) - Countermeasures involve: optimizing resource allocation and cost control, strengthening safety education and accountability, and establishing a comprehensive environmental management and supervision system to ensure compliance and ecological restoration[53](index=53&type=chunk) Section V [Significant Events](index=20&type=section&id=Section%20V.%20Significant%20Events) This section details the company's significant events, including the fulfillment of commitments, integrity status of the controlling shareholder, major related-party transactions, social responsibility initiatives, and other important matters [Fulfillment of Commitments](index=21&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E3%80%81%E8%82%A1%E4%B8%9C%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E3%80%81%E6%94%B6%E8%B4%AD%E4%BA%BA%E4%BB%A5%E5%8F%8A%E5%85%AC%E5%8F%B8%E7%AD%89%E6%89%BF%E8%AF%BA%E7%9B%B8%E5%85%B3%E6%96%B9%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E5%8F%8A%E6%88%AA%E8%87%B3%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%B6%85%E6%9C%9F%E6%9C%AA%E5%B1%A5%E8%A1%8C%E5%AE%8C%E6%AF%95%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) During the reporting period, controlling shareholder Xingye Group failed to fully meet its performance commitments for subsidiaries Tanghe Times and Rongbang Mining, with 86.52 million RMB in compensation outstanding for 2017 and 2018, despite repeated company催缴 - Controlling shareholder Xingye Group has an outstanding compensation payment of **86.52 million RMB** due to Tanghe Times and Rongbang Mining failing to meet their performance commitments for 2017 and 2018[59](index=59&type=chunk)[60](index=60&type=chunk) - The company has repeatedly sent letters to Xingye Group to urge payment but has not yet received a feasible fulfillment plan and will continue to communicate and supervise its obligations[60](index=60&type=chunk) [Controlling Shareholder's Integrity Status](index=23&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E3%80%81%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E7%9A%84%E8%AF%9A%E4%BF%A1%E7%8A%B6%E5%86%B5) The company's controlling shareholder, Xingye Group, has been petitioned for reorganization by its creditor, Chifeng Yubang Mining Co., Ltd., due to its inability to repay matured debts, which may impact the company's equity structure - Controlling shareholder Xingye Group has been petitioned for reorganization by its creditor to the Chifeng Intermediate People's Court due to its inability to repay matured debts[62](index=62&type=chunk) [Major Related-Party Transactions](index=24&type=section&id=%E5%8D%81%E4%BA%8C%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) During the reporting period, the company engaged in related-party debt and credit transactions, including 86.52 million RMB in performance compensation receivable from the controlling shareholder and 34.10 million RMB in funds lent to joint venture Tongdu Mining, alongside office building leases and inter-company guarantees | Related Party | Relationship | Item | Period-end Balance (RMB) | | :--- | :--- | :--- | :--- | | Inner Mongolia Xingye Group Co., Ltd. | Controlling Shareholder | Performance Compensation | 86,519,300.00 | | Kunming Dongchuan District Tongdu Mining Co., Ltd. | Joint Venture | Fund Lending | 34,098,000.00 | - The company leases office space from its controlling shareholder, Xingye Group, with an annual rent of **7.18 million RMB**[71](index=71&type=chunk)[72](index=72&type=chunk) - The company provided a **592 million RMB** mortgage guarantee for its subsidiary Tanghe Times and a **1.1 billion RMB** mortgage guarantee for Xingye Mining itself, with inter-subsidiary guarantees also in place[73](index=73&type=chunk) [Social Responsibility](index=27&type=section&id=%E5%8D%81%E4%BA%94%E3%80%81%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E6%83%85%E5%86%B5) The company prioritizes environmental protection, ensuring all subsidiaries comply with regulations for waste treatment and ecological restoration, with no subsidiaries listed as key polluting units, and also engages in targeted poverty alleviation efforts - All company subsidiaries are not listed as key polluting units and have implemented various measures to ensure pollutant discharge compliance and circular utilization[76](index=76&type=chunk) - Due to the production accident, subsidiary Yinman Mining's underground dewatering water is discharged into rivers after purification, with project approval obtained[76](index=76&type=chunk) - In terms of social poverty alleviation, subsidiary Rongguan Mining invested **0.05 million RMB** in targeted poverty alleviation during the reporting period[80](index=80&type=chunk)[81](index=81&type=chunk) [Other Significant Matters](index=30&type=section&id=%E5%8D%81%E5%85%AD%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9%E7%9A%84%E8%AF%B4%E6%98%8E) During the reporting period, the company terminated its planned acquisition of Turpan Xueyin Metal Mining Co., Ltd. shares, did not proceed with a proposed 600 million RMB financial assistance to Fujian Zhonghe Co., Ltd. due to unfulfilled guarantees, and reiterated the controlling shareholder's reorganization application - On January 31, 2019, the company decided to terminate the acquisition of Turpan Xueyin Metal Mining Co., Ltd. equity through share issuance and cash payment, citing changes in capital market conditions and slower-than-expected transaction progress[82](index=82&type=chunk)[83](index=83&type=chunk) - The proposed financial assistance of up to **600 million RMB** to Fujian Zhonghe Co., Ltd. (ST Zhonghe) was not implemented due to unfulfilled guarantee measures[84](index=84&type=chunk) - The controlling shareholder, Xingye Group, has been petitioned for reorganization by its creditor, an event that remains uncertain but could impact the company's equity structure[85](index=85&type=chunk)[86](index=86&type=chunk) [Significant Subsidiary Matters](index=32&type=section&id=%E5%8D%81%E4%B8%83%E3%80%81%E5%85%AC%E5%8F%B8%E5%AD%90%E5%85%AC%E5%8F%B8%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9) The most significant subsidiary event during the reporting period was the major transportation safety accident at wholly-owned subsidiary Yinman Mining on February 23, 2019, which remains under investigation, with the subsidiary still in a state of production suspension - On February 23, 2019, wholly-owned subsidiary Yinman Mining experienced a major transportation safety accident[87](index=87&type=chunk) - As of the report disclosure date, Yinman Mining remains in a state of production and business suspension, with the accident investigation still ongoing and no final results yet issued[87](index=87&type=chunk) Section VI [Share Changes and Shareholder Information](index=32&type=section&id=Section%20VI.%20Share%20Changes%20and%20Shareholder%20Information) This section details the company's share capital stability, share repurchase status, and the composition and holdings of its shareholders, including significant pledges and freezes [Share Changes](index=33&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) During the reporting period, the company's total share capital remained unchanged at 1.87 billion shares, with no share repurchases occurring in the period, though 31.31 million shares previously repurchased were cancelled post-period - During the reporting period, the company's total share capital and share structure remained unchanged, with a total of **1,868,500,557 shares**[89](index=89&type=chunk) - As of June 30, 2019, the company had completed its share repurchase plan, accumulating **31.31 million shares** at a total cost of approximately **200 million RMB**, which were subsequently cancelled on August 12, 2019[89](index=89&type=chunk)[90](index=90&type=chunk) [Shareholder Numbers and Shareholdings](index=34&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5) As of the end of the reporting period, the company had 49,499 common shareholders, with the controlling shareholder, Inner Mongolia Xingye Group Co., Ltd., holding 29.76% of shares, almost entirely pledged and judicially frozen, and the second-largest shareholder, Gansu Northwest Mining Group Co., Ltd., holding 7.80%, also fully pledged and frozen - At the end of the reporting period, the company had **49,499 common shareholders**[92](index=92&type=chunk) | Shareholder Name | Shareholding Percentage | Shareholding Status | | :--- | :--- | :--- | | Inner Mongolia Xingye Group Co., Ltd. | 29.76% | Almost entirely pledged, entirely frozen | | Gansu Northwest Mining Group Co., Ltd. | 7.80% | Entirely pledged, entirely frozen | | Chifeng Fulong Public (Group) Co., Ltd. | 7.40% | Partially pledged | | Li Xianlai | 5.90% | Almost entirely pledged | - Shareholders Ji Xiang and Ji Wei have father-son/daughter relationships with the company's actual controller, Ji Xingye; shareholder Li Xianlai and Li Pei have a father-daughter relationship[93](index=93&type=chunk) Section X [Financial Report](index=40&type=section&id=Section%20X.%20Financial%20Report) This section presents the company's unaudited consolidated and parent company financial statements for the first half of 2019, along with detailed notes on key financial items and related-party transactions [Financial Statements](index=40&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This chapter provides the unaudited consolidated and parent company financial statements for the first half of 2019, showing a significant decline in consolidated operating revenue to 337.76 million RMB and a net loss of 78.04 million RMB, alongside total assets of 9.01 billion RMB and net cash flow from operating activities of 181.61 million RMB Consolidated Balance Sheet Summary (2019-06-30) | Item | Amount (RMB) | | :--- | :--- | | Total Assets | 9,009,623,473.59 | | Total Liabilities | 3,841,588,824.71 | | Equity Attributable to Parent Company Owners | 5,177,099,587.22 | Consolidated Income Statement Summary (H1 2019) | Item | Amount (RMB) | | :--- | :--- | | Total Operating Revenue | 337,755,185.38 | | Total Operating Costs | 405,219,992.37 | | Total Profit | -88,577,723.74 | | Net Profit | -78,042,206.70 | | Net Profit Attributable to Parent Company Owners | -78,041,673.15 | Consolidated Cash Flow Statement Summary (H1 2019) | Item | Amount (RMB) | | :--- | :--- | | Net Cash Flow from Operating Activities | 181,605,334.22 | | Net Cash Flow from Investing Activities | -134,344,829.04 | | Net Cash Flow from Financing Activities | -70,138,269.21 | | Net Increase in Cash and Cash Equivalents | -22,877,764.03 | [Notes to Consolidated Financial Statements](index=81&type=section&id=%E4%BA%94%E3%80%81%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E4%B8%BB%E8%A6%81%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This chapter provides detailed explanations of key items in the consolidated financial statements, including cash and cash equivalents, accounts receivable, inventories, fixed assets, construction in progress, short-term borrowings, and provisions for the "2·23" safety accident - Cash and cash equivalents at period-end amounted to **21.81 million RMB**, of which **7.14 million RMB** was restricted due to litigation freezes and environmental governance deposits[184](index=184&type=chunk) - Accounts receivable at period-end totaled **91.86 million RMB**, with a bad debt provision of **5.48 million RMB** based on aging analysis[189](index=189&type=chunk) - Fixed assets had a book value of **2.97 billion RMB**, including **369 million RMB** in buildings and structures for which property certificates have not yet been obtained[210](index=210&type=chunk)[213](index=213&type=chunk)[215](index=215&type=chunk) - Due to the Yinman Mining "2·23" major transportation safety accident, the company recognized a provision of **3 million RMB** for estimated fines based on relevant regulations[237](index=237&type=chunk) - The total amount of assets whose ownership or use rights are restricted is **2.05 billion RMB**, primarily mining rights, land use rights, and fixed assets pledged for bank borrowings[264](index=264&type=chunk) [Related Parties and Related Party Transactions](index=111&type=section&id=%E4%B9%9D%E3%80%81%E5%85%B3%E8%81%94%E6%96%B9%E5%8F%8A%E5%85%B3%E8%81%94%E6%96%B9%E4%BA%A4%E6%98%93) This chapter discloses related-party transactions, identifying Ji Xingye as the actual controller and Inner Mongolia Xingye Group Co., Ltd. as the controlling shareholder with a 29.76% stake, detailing significant transactions such as office leases, substantial loan guarantees by the controlling shareholder, inter-subsidiary guarantees, and funds lent to a joint venture, with 86.52 million RMB in performance compensation receivable from the controlling shareholder at period-end - The company's controlling shareholder is Inner Mongolia Xingye Group Co., Ltd., holding **29.76%** of shares, and the actual controller is Ji Xingye[280](index=280&type=chunk) - Controlling shareholder Xingye Group and its chairman Ji Xingye provided loan guarantees totaling **2.24 billion RMB** for the company and its subsidiaries[283](index=283&type=chunk)[284](index=284&type=chunk) - The company lent **34.10 million RMB** to its joint venture, Kunming Dongchuan District Tongdu Mining Co., Ltd., for its production startup[287](index=287&type=chunk) - Among receivables from related parties, the most significant is the performance compensation receivable from controlling shareholder Xingye Group, with a period-end balance of **86.52 million RMB**[289](index=289&type=chunk) [Other Significant Matters](index=115&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%B6%E4%BB%96%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This chapter discloses other important information impacting investor decisions, including the breakdown of main business by product and region, the high proportion of pledged and judicially frozen shares held by the controlling shareholder and second-largest shareholder, and reiterates the significant safety accident at Yinman Mining and the controlling shareholder's reorganization application | Product Category | Operating Revenue (RMB) | Operating Cost (RMB) | | :--- | :--- | :--- | | Zinc Concentrate | 182,327,393.46 | 78,575,577.78 | | Iron Concentrate | 56,174,247.10 | 26,308,270.23 | | Tin Concentrate | 38,386,777.14 | 21,751,851.60 | | Copper-bearing Silver Concentrate | 30,249,672.89 | 16,690,355.51 | - Controlling shareholder Xingye Group's **30.27%** stake in the company is entirely judicially frozen and **99.81%** is pledged[299](index=299&type=chunk) - The second-largest shareholder, Northwest Mining, has its entire **7.94%** stake in the company pledged and judicially frozen[300](index=300&type=chunk) - Reiteration of significant matters includes the major transportation safety accident at subsidiary Yinman Mining, the company's share repurchase and cancellation, and the controlling shareholder's application for reorganization[301](index=301&type=chunk)[302](index=302&type=chunk)[303](index=303&type=chunk)

Group 1: Event Details - Inner Mongolia Xingye Mining Co., Ltd. will hold the 2019 Annual Online Investor Collective Reception Day on July 10, 2019, from 15:00 to 17:00 [2] - The event will be conducted remotely via the "Panorama Roadshow" platform [2] - Investors can participate in the interactive session by logging into the provided website [2] Group 2: Attendees - The event will feature company executives including Mr. Dong Yong (Executive Vice President and CFO), Mr. Sun Kai (Vice President and Board Secretary), and Ms. Shang Jianan (Securities Affairs Representative) [2] - Company executives will engage with investors on topics such as corporate governance, development strategy, and operational status [2] Group 3: Assurance - The company and its board members guarantee the authenticity, accuracy, and completeness of the announcement, ensuring no false records or misleading statements [2]